Case study
Transforming automotive inbound LTL networks for 17% cost savings
At a glance
Automotive manufacturer with over 3000 pickup locations in its global inbound transportation network
4flow TORO software implemented in 2 months to optimize LTL shipments during material planning phase
Over 17% transportation cost savings achieved
Average shipment volume increased by 74%
Want to discover how 4flow TORO can optimize your automotive inbound LTL networks?
The challenge
This global automotive manufacturer was facing high levels of complexity in its transportation network. With approximately 3000 pickup locations, components coming from over 700 different suppliers across the globe, tight production schedules and high quality standards, the manufacturer saw potential to reduce complexity and costs.
Ensuring material availability was a challenge for the material planning department. To ensure supply, the OEM received material shipments 5 times per week.
As a result of frequent deliveries, LTL capacities were often only partly used. And because the shipment size determines cost, low utilization led to higher transportation costs than necessary.
The solution
The automotive OEM sought to constantly review measures and tools for process improvement and cost reduction. Together with 4flow, it found great potential to increase the utilization of LTL inbound lanes using 4flow TORO, a plug-in application that allows businesses to consider and optimize transportation earlier in the material phase.
4flow TORO was integrated in just two months.
The results
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4flow TORO used to prepone and consolidate low volume shipments
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Shipment utilization increased by 74%
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Transportation costs reduced by 17%
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4flow TORO integrated in existing IT landscape
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Global roll-out planned
Using call-off data from the OEM’s ERP system, the planners use 4flow TORO to prepone low volume shipments and consolidate them with shipments scheduled up to a few days earlier. The optimized data is then sent back to the ERP system a few days before the actual call-off date to be processed for execution. This approach increased shipment utilization by 74% and reduced transportation costs by 17%.
The solution adapts to the existing IT landscape and processes without creating any negative impact on stakeholders and overall planning. Looking ahead, the automotive manufacturer plans a step-by-step integration of all major European plants, and eventually a global roll-out of 4flow TORO.
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