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Strategic Partnership Set to Help Manufacturers Emerge from Recession
Infor SCM Network Design Enables Reduction in Cost, Carbon Footprint
One of the largest railroads in North America, has saved more than 100 customers millions of dollars a year in fuel and transport costs using Infor SCM Network Design. The supply chain management solution, which has been in use at the company for ten years, provides Norfolk Southern the ability to model their customers supply chains to determine where to make, buy, store, and move product through the supply chain network and by the optimal mode of transportation.
Green is a big customer focus, and rail offers the most fuel-efficient means of transporting goods moving a ton of freight over 450 miles on a single gallon of fuel, said Andy Piper, manager of supply chain development, Norfolk Southern Corporation. We chose Infor SCM Network Design because it allows us to reduce cost and carbon output, and ultimately answer various what if questions from our customers regarding the design of their supply chain networks.
SCM Network Design helps drive business decisions for Norfolk Southern in more than 30 ways, including modal selection, network analysis, site selection, drayage optimization, and inventory and competitive analysis. The solution enables the company to determine the resulting impact for customers of converting to rail from truck mode, including the reduction in carbon footprint and freight transport cost.
According to the American Association of Railroads (AAR), if ten percent of long distance freight from truck moved by rail instead, fuel savings would be in excess of $1 billion. In addition to fuel savings, the AAR reports that US freight rates have fallen by nearly half since 1980 to be the most affordable in the world. In fact, US freight rates are less than half of the rates in China, Japan and European countries.
"As fuel costs, highway congestion and environmental consciousness skyrocket, building a supply chain network that factors in a variety of transportation modes to minimize costs and carbon footprint is critical, said Brent Forden, senior product manager, Supply Chain Management, Infor. Norfolk Southerns incredible customer savings from Infor SCM Network Design showcase how supply chain planning using rail has become a critical component for companies that need to ship goods around the country."