News: Significant carbon reduction and transport cost savings achieved with Barloworld Integrated Supply Chain Planning Solutions
Barloworld Supply Chain Software (SCS) customer CEVA
Logistics has assisted a European manufacturing company to reduce
its carbon emissions by more than 40% and transport costs by more
than 30% by implementing its CAST supply chain planning
software.
CEVA Logistics was approached by the industrial products
manufacturer four years ago and asked to help streamline its
aftermarket spare parts operation, which was spread out across nine
warehouses in Europe and five spare parts centres across the rest
of the world. The company faced a number of challenges including a
high volume of critical deliveries and pressure from customers
requiring competitive costs and increased flexibility. In addition,
organisations worldwide face considerable penalties should they
fail to meet government environmental targets to reduce CO2
emissions.
The manufacturer believed that by creating a European hub from
which parts could be delivered globally it would be able to build a
more reliable and agile supply chain which in turn would make it
possible to achieve fuel savings and lower carbon emissions.
Using Barloworld SCS's CAST software, CEVA Logistics were
able to calculate a 3-5 year strategic plan which was used as a
basis for the operation. A number of potential scenarios were
evaluated. It was confirmed that the objectives could be attained
by establishing the central distribution facility in The
Netherlands. Adding CEVA Logistics as the Lead Logistics Provider
enabled management of all transportation flows and implementation
of savings initiatives such as transferring movement of freight
from air to road and consolidating small shipments.
Ewan French, Chief Operating Officer for Barloworld SCS, and
Robert Wieggers, Head of Solution Design at CEVA, presented the
results of applying CAST in a case study at a recent international
event. Evidence was shared to reveal the actual cost savings and
carbon reduction were considerably higher than originally
estimated. The presentation also demonstrated how companies
integrating supply chain planning across both functional divisions
and planning time horizons also realise significant improvements in
logistics, inventory, and service performance compared to companies
planning their supply chain in traditional 'silos', or without
integration.
"This case study is a great way to demonstrate the effects that
strategic modelling can have on the day to day supply chain" says
Robert Wieggers. "We are able to share the whole story from the
initial strategy generated by the supply chain software to the
actual savings achieved after several years of operation."
For demonstrating a CO2 friendly supply chain redesign for this
customer, CEVA Logistics was awarded the Lean and Green Award by
Connekt, a Dutch forum that promotes smart and sustainable
'mobility' thinking among logistic service providers and
international partners. The Lean and Green Award is awarded to
companies that are committed to reducing the CO2 emissions in their
logistics activities by 20% within a five year period.
For further details call +44 (0)121 746 5350 or email
marketing@barloworldscs.com