How you can significantly lower logistics costs by implementing integrated transport management
The project’s success is clearly demonstrated with figures: The quantitative factors include inventories of purchased parts that were reduced by 10 percent and supplier performance that improved from 94 to 98 on a 100-point scale among participating suppliers. Through the introduction of TOMS, the quality of transport orders also improved in terms of form, content, on-time delivery and utilized capacity. In addition, the manual effort required in the goods-receipt department was significantly lowered.
TOMS provides users with an improved overview of the streams in their own transport networks. As a result, tactical decisions for consolidation points can be made more easily and the operational awarding of transport jobs can be optimized. The project also demonstrates the importance of implementing an integrated and standardized overall solution involving all stakeholders in the value chain, including logistics service providers.
Feedback on the new process has been unanimously positive among both internal and external project participants. For instance, Matthias Steiger, Director of Logistics at LuK GmbH & Co. KG, headquartered in Bühl, Germany, and part of the Schaeffler Group, noted: “Our top goals ‘speed, transparency, responsiveness and optimal inventories at the lowest possible costs’ are achieved with these integrated processes.” And Peter Gärtner, Head of Scheduling and Vehicle Fleet of the logistic service provider Cosi Stahllogistik GmbH & Co. KG in Hagen, Germany, said: “The transport business is all about flexibility and efficiency. With transport requests received through TOMS, we obtain more exact data in a standardized form and are able to more precisely coordinate our route planning.”
The project that Schaeffler UK successfully carried out with approximately 20 suppliers now serves as the template for other plants and will be gradually rolled out throughout the group.
SupplyOn congratulates its customer Schaeffler for winning the award and for successfully carrying out the project.