Challenge of managing global supply chains, with multiple sources and suppliers, fragmented shipment channels, and varied timeframes and costs.
Global visibility in real time
Case study
Optimize supply chain with NEOLink’s Control Tower
Challenge Summary:
The Company is one of the world’s leading designers, manufacturers and distributors of ride control products, which are systems for the automotive original equipment market and aftermarket.
The manufacturer must coordinate more than 60 suppliers in the U.S.A., Mexico and Canada on a daily base.
Challenge:
90% of the parts ship from U.S.A., Mexico and Canada to Europe by LCL. The plan is to build a central hub to consolidate LCL shipments into FCL, reducing transportation costs.
The suppliers have less or zero experience with international logistics. Thus, not able to create proper documentation which lead to tremendous delay.
80% of approximately 6,000 shipments per year were required to go by Air instead of LCL to avoid production shut down.
Solutions:
- Building a consolidation hub in Midwest.
- Setting up NEOLink’s Control Tower
- To monitor documentation creation performance of each supplier and getting products delivered on time.
- View all orders with a comprehensive, easy to use dashboard, in real time. Measure/analyze LCL volume, to build FCL consolidation boxes.
- Provide training to all suppliers in creating the necessary and proper documents.
- Coordinate schedules for all overseas shipments.
Result within 12 months period:
NEOLink improved documentation creation process by 75%.
Number of urgent airfreight shipments decreased from 80% to 30%.
Remaining 70% of all shipments were consolidated in FCL boxes in the consolidation hub in Midwest.
Total saving in transportation cost: 1.8 million USD
