Case Study: Transportation Intelligence Drives Successful Startup for Electric Vehicle Manufacturer

Challenge
When an electric vehicle manufacturer was planning to launch a major startup operation, its materials and logistics team began rethinking the existing transportation plan. The company had been relying on manual methods to source parts for its current production base, but the new venture was no ordinary expansion. The company was creating an all-new business unit in a newly acquired facility dedicated to producing a new product.

Since the business relied on tactical activities to plan inbound shipments, it lacked a universal supplier database and didn’t have visibility into inbound material flows. The logistics staff realized the startup would benefit from a more automated way of planning and executing shipments. It needed a more strategic approach to transportation that would allow it to expand manufacturing capacity while driving costs down.

Solution
The manufacturer approached the experienced transportation management team at Comprehensive Logistics Inc. (CLI), a provider of custom logistics programs and managed transportation services. CLI uses a diagnostic approach that focuses on working collaboratively with customers to define their current state and map out the best way for them to reach their goals. CLI’s transportation analysts work on a company’s behalf, as an extension of the existing transportation department. This approach enables CLI to engineer programs that effectively address each customer’s unique needs.

This impartial, shipper-oriented methodology was attractive to the vehicle manufacturer because it was venturing into new territory and needed a more efficient way to manage its complex, global supply chain.

CLI began by analyzing current operations and uncovering opportunities for efficiency improvements. Since the company lacked a supplier database, CLI began working with buyers to identify suppliers and met with the engineering staff to identify part numbers from bills of material.

Next, CLI developed a common database to house this information and even implemented new processes that would allow the manufacturer to conduct similar data-collection efforts on its own in the future.

CLI also modeled a new inbound logistics plan for the global supply base and helped plan and manage all maintenance, repair and operations (MRO) shipments from international suppliers.

CLI went a step further by posting inbound, prepaid shipments into ProFr8, a configurable, web-based application that powers transportation management processes at CLI.

Results
With a more strategic transportation plan, the manufacturer was ready to launch its new business venture.

Access to CLI’s Internet-based system provides full visibility into the inventory pipeline, 24 hours a day, seven days a week, from any location. By simply logging into ProFr8 through a secure web interface, materials and logistics executives responsible for the startup operation can view in-transit material and access detailed delivery records for shipments that arrive at the plant.

Armed with newfound visibility and streamlined processes, the company can now make more proactive business decisions instead of reacting to unplanned logistics events. This improves efficiency and eliminates unnecessary cost and waste from the global supply chain.

As a result, the manufacturer was better equipped to grow its manufacturing capacity while remaining profitable and securing new opportunities for future growth.

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