Automotive OEM reduces inbound logistics costs

Ford Motor Corporation gains savings on inbound goods logistics costs with SynQuest Supply Chain Planning software.

SynQuest (Nasdaq: SYNQ) has announced that Ford Motor Corporation (NYSE: F), a leading manufacturer of automobiles and trucks, has successfully used SynQuest supply chain planning solutions to reduce the cost of logistics associated with delivery of materials to its assembly operations.

SynQuest software helps Ford to optimise the flow of inbound materials for lowest total delivered cost.

"Ford and SynQuest teamed to develop a solution that has helped us better plan, develop and optimise the logistics network for production materials shipped to our assembly plants," said Frank Taylor, vice president of material planning and logistics at Ford.

"The SynQuest software provides the ability to model our complex inbound network, which includes transportation routes, cross docks and plant and supplier operations.

The SynQuest cost optimisation technology has resulted in total cost reductions to Ford.

With the first application of the software, we have recovered more than our investment." Ford is using SynQuest Inbound Planning Engine software to examine its North American inbound distribution network to determine the delivery route schemes for every part at the lowest overall transportation cost, while supporting the just-in-time requirements of the Ford assembly plants.

The new logistics design resulted in a reduction in the number of routes, trips, and total miles.

It also increased overall truck and trailer utilisation.

According to Joe Trino, CEO and chairman of SynQuest, "Our strategic relationship with Ford has resulted in an industry first - the ability for Ford to understand and minimise its total inbound logistics costs, while better synchronising delivery to assembly operations.

Ford not only reduces transportation costs, but inventory carrying costs and material handling costs as well.

The benefits to Ford are twofold.

Ford can take out costs today in its existing inbound logistics network.

In addition, Ford can get an understanding of its potential inbound logistics costs further upstream during the forward model planning process, which will lead to lower and more predictable costs." "The SynQuest solution's ability to readily model our complex logistics network allows us to more quickly respond to changes in demand or model option mix," said Pam Stec, manager, Ford North American Material Logistics.

"Using the SynQuest solution, we and our logistics partner can get through the logistics network redesign process faster, allowing Ford to capture a larger share of the potential savings opportunities." The Ford North American logistics network includes 21 assembly plants being served by 4,000 suppliers through 4,500 shipments per day involving 46,000 parts.

SynQuest, US.

specialises in providing supply chain planning software to maximise profit and optimise service for companies with complex logistics networks.

SynQuest software uses financially focused technology to solve specific supply chain problems for target markets including automotive, consumer durable and industrial manufacturers.

The company's supply chain planning solutions feature rapid implementation for fast, compelling return on investment.

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