The automotive industry is seeing global growth, but faces challenges created by rapidly changing consumer expectations, expansion in emerging markets, and new technologies. Shorter technology cycle times, more product options, and increased demand for innovation add even more complexity. Automotive shippers and their suppliers can stay competitive and balance downward cost pressures by improving visibility to products in transit, driving compliance to procurement plans, optimizing network design and support execution related to Plan for Every Part (PFEP).
JIT operations require visibility and coordination to minimize risk
Just in time operations significantly improve asset turnover ratios and return on equity for TMC’s automotive customers—if they can coordinate and gain visibility to inventory and minimize costly line-down occurrences. Using TMC’s global Navisphere® platform, automotive customers obtain in transit visibility and can make immediate and informed expedited freight decisions.
Companies significantly cut freight charges by using PFEP data to control inbound freight
It’s difficult to reduce costs on inbound transportation when inbound suppliers control freight decisions. Successful collaboration with many of our automotive customers has allowed them to transition their supplier controlled routings to manufacturer controlled inbound networks. Navisphere gives suppliers load plans and carrier routings that are based on the customer’s PFEP for significant freight cost reductions across the entire inbound supply chain. This drives compliance, improves cost control, and reduces expedited freight charges. Customers’ plants obtain proactive visibility to product arrivals so they can make more efficient decisions that can impact lead-time, product shipments, and product sourcing changes.
Route optimization and network design remove unnecessary transportation costs
Once our automotive customers have visibility and freight control, we work together on route optimization and network design. TMC analyzes and makes network recommendations so our customers can implement crossdocking programs, multi-stop routings, dedicated fleets, and LTL consolidation. These changes reduce transportation costs and improve customer service productivity.
Improved truck utilization and increased consolidations
Ongoing safety standards, emissions regulations, lean manufacturing, and increased technology adoption have created a shift in what automotive companies must do to remain competitive. While PFEP can help reduce supply chain cycle times and inventory, this data can become siloed in organizations. We have conducted order planning simulations using PFEP data to consider the transportation and inventory cost tradeoffs and used Navisphere to execute shipments directly off those plans. Additionally, we’ve calculated cubic feet to optimize truck utilization and increased inbound and outbound shipment consolidations. In fragmented automotive businesses, Navisphere’s single global technology platform provides global visibility and process standardization and efficiencies.