Results

• Estimated $1.2M reduction (10-15%) in freight spend in participating regions
• Significant improvement in velocity, frequency, delivery accuracy, etc.
• Reduction of unmapped spend from $120k/week to under $5k/week

Company Profile & Position

• Privately owned German automotive company with multiple plants around the world serving various OEM’S

Situation

• German HQ brought in counterpart 1-year earlier to develop and roll out Transportation Optimization Plan
• Typical automotive that started small, grew, expanded, and did not take into consideration global demographic/industrial differences/regions
• “Assumption” that “what’s good for the goose is good for the gander.” Logistics in EU and US are not the same (and frequently incompatible)

Key Challenges

• Setting common baseline to support future measurements
• Understanding complexity (including pricing models) between continents
• Clear understanding differences (e.g. EU “groupage” vs US TL/LTL
• Identifying value proposition that worked for all

Implementation

• Pilot – 6 suppliers shipping to Mexico, common to other Tier 1’s
• Phase – Additional 28 suppliers shipping to other co-located US plants
• Implementation of “shared milk-run” model to deliver lowest possible cost for all participants