Successful collaboration generates greater visibility and significant cost reductions
Automotive manufacturer Opel/Vauxhall has collaborated with 4flow since 2011 to optimize its European aftersales transportation network. To achieve that goal, Opel/Vauxhall has implemented a comprehensive digitization strategy.
In the context of this broader strategy, Opel/Vauxhall and 4flow have created a suite of tailored, successful digital solutions that fulfill Opel/ Vauxhall’s logistics and supply chain management needs. This ongoing process, based on a common set of values and targets, has established a successful partnership.
Strategy for aftersales network optimization
In order to find economically viable and sustainable solutions for the issues of supply chain fragmentation, inefficient communication, low data exchange, and limited material traceability within its aftersales supply network, Opel/Vauxhall set a strategic goal of 100 percent network visibility. The strategic measures for achieving this goal include an integrated IT solution for aligning all parts of the aftersales network, implementing resource-efficient, agile, and risk-resistant processes, establishing solid infrastructure to ensure real-time availability and visibility of logistics data, promoting innovation across all supply chain partners, and creating a framework for socially, environmentally and economically sustainable operations.
Integrated solutions in the Transportation Control Center
Opel/Vauxhall and 4flow combined all relevant solutions in the Transportation Control Center (TCC), which provided all stakeholders with the ability to interact and transfer data both synchronously and asynchronously on a global scale. The Transportation Control Center integrated material management, suppliers, carriers, carrier hubs, pre-packer locations, source and distribution warehouses, dealers, and return and processing centers into a single, shared virtual communication platform.
The Transportation Control Center’s integrated IT landscape consists of several interrelated systems, the foremost of which is 4flow vista®, 4flow’s integrated standard software for strategic and tactical network planning and operational load dispatching. 4flow vista® offers tailored and interlinked dock management, as well as inbound order allocation and balancing. Taken together, the systems of the Transportation Control Center perform a range of additional functions – they handle operational processing and shipment tracking, manage Opel/Vauxhall-owned container stocks at all network locations including suppliers and dealers, and provide data warehousing across all systems to facilitate and automate standardized reporting on strategic, tactical and operational levels.
Apart from the primary IT systems, a number of modules and processes provide further flexibility and visibility. These include measures for maintaining freight cost rates and contractual conditions, tracking operational performance and exception management, allowing for data exchange between Opel/Vauxhall and carrier IT systems.
Sustainable cost reduction and visibility
Implementing the Transportation Control Center will enable Opel/Vauxhall aftersales to achieve full visibility of aftersales transportation flows – the integrated transportation management solution currently provides transparency and visibility for over 90 percent of inbound volume, 100 percent of inter-warehouse volume and over 90 percent of outbound volume. The current integration plan foresees 100 percent visibility of all flows by the third quarter of 2019. As such, Opel/Vauxhall’s material and transportation flows, freight costs, and process performance will all produce fully visible data that can be leveraged to make informed decisions and drive innovation and conceptual development. Data of this kind has already prompted the implementation of continuous monitoring and improvement processes to maintain and further improve current performance levels.
Kai Rabe, CCA Logistics Manager at Opel/Vauxhall, said, “Thanks to our collaboration with 4flow and our Transportation Control Center, Opel/Vauxhall aftersales has achieved total visibility of inbound, inter-warehouse and outbound transportation flows with significant cost savings.” In the process of realizing these significant improvements, program benefits consistently exceeded program costs by a wide margin. Moreover, the insights gained from the Transportation Control Center have enabled Opel/Vauxhall aftersales to reduce yearly total freight costs by more than 10 percent, and end-to-end monitoring makes those savings sustainable. Additionally, frequent changes in corporate networks can be addressed quickly, and appropriate solutions can be developed proactively. Other benefits include transparency along the entire supply chain, optimized communications, complete materials traceability, and elimination of supply chain fragmentation. The collaboration between Opel/Vauxhall and 4flow is highly innovative and its sustainable solutions result in qualitative improvements for the European aftersales network.
More innovation on the horizon
In recognition of the increased visibility and cost savings that the Transportation Control Center generates for Opel/Vauxhall, 4flow was awarded GM Supplier of the Year awards in 2015 and 2016. In 2018, the supply chain publication Automotive Logistics honored 4flow and Opel/Vauxhall’s ongoing initiative with the prestigious Automotive Logistics Award Europe in the “Better Visibility” category. Accolades like these drive 4flow to further optimize Opel/Vauxhall’s aftersales network and ensure that the Transportation Control Center continues to set new standards in efficiency and sustainability.
Author: KAI MUELLER, Vice President at 4flow