“OUR COMMITMENT TO CONTINOUS IMPROVEMENT AND REDUCTION OF COST ARE THE CORE OF CREATING AND ENHANCING THE VALUE OF YOUR SUPPLY CHAIN”
A Tier One Automotive Supplier assembles the chassis module for an OEM in the Toledo, OH area. The chassis modules consist of more than 600 components from over 120 suppliers that span across the United States, Canada and Mexico. The Tier One Automotive Supplier initially contracted with one of the Big 5 logistics companies as its Lead Logistics Provider. A few years into the contract they realized that the Big 5 logistics company lacked a strong logistics strategy and focus on efficiency and cost reduction efforts. Logos was asked to evaluate the Tier One Automotive Suppliers’ logistical network holistically. Soon thereafter Logos was hired to implement and manage the solution.
Logos was awarded a multi-year, multi-million dollar logistics contract to perform as the Lead Logistics Provider. Logos’ logistics engineering team presented and swiftly implemented cost reductions in freight spend by re-evaluating and optimizing the Tier One’s logistics network. In addition, Logos’ scope of work includes shipment planning and execution, carrier sourcing and contracting, track and trace, on-site management, freight bill audit and payment, claims management, KPI reporting and continuous improvement. The scope of work for the Tier one supplier has continued to expand with the addition of a plant and the expansion of their business into aftermarket up-fit assembly. Logos has seamlessly supported the additional scope of work while providing recommendations that are being implemented to improve efficiencies and reduce total cost.
The holistic logistics strategy has helped the Tier One Supplier in the following ways:
Reduction in Freight Spend
Logos has reviewed and supported re-designs to improve transportation route designs, increasing load efficiencies, thereby reducing inventory. This has led to an immediate impact in savings.
Reduction of Management Fees
Logos competitive management fees have led to an immediate impact in savings.
Freight Bill Audit and Payments
Logos’ auditing services identifies invoice billing errors. The complete billing data is utilized further downstream to provide Logos with key financial information when formulating carrier pricing, freight consolidation and network improvements.
Improved Supply Chain Control and Quality
Logos continuously monitors carriers through several Key Performance Indicators. Logos tracks and traces all movements and grades the quality of each move. Thereby improving control over the supply chain and increasing quality.
Flexibility and Adaptability Through Expertise
Logos constantly improves the supply chain to reduce net costs. In addition, Logos has the expertise to seamlessly implement and adjust to changing requirements to fit the needs of the customer. Logos has implemented significant improvements in efficiency and cost reductions in logistics spend. Our commitment to continuous improvement and reduction of net costs are the core of creating and enhancing the value of your supply chain.
Challenge
- Lack of overall logistics strategy
- Several specialized logistics providers
- Lack of continuous improvement efforts
- Transportation spend over budget
- Expensive management fees
Solution
- One provider for all logistics services
- Identifying and implementing logistics saving opportunities
- Innovative and logical solutions for cost reductions and continuous improvement
- Aiding in realigning transportation spend to budget
- Reduced management fees
Creating & Enhancing Value Through
- Identifying and implementing logistics savings
- Optimizing supply chain resources
- Being lean & efficient
- Competitive Pricing
- Innovativing Solutions
