Exel, the global leader in supply chain management, has signed a four-year contract with Alfa Laval, a manufacturer of heat exchange and fluid handling systems. The business involves the outsourcing and distribution of Alfa Laval's internal shipping processes including air, sea and roadfreight between the company's various production and distribution centres, and worldwide shipments.
Alfa Laval operates in 100 countries worldwide with headquarters in Sweden. Its customers are mainly in the energy, brewing, and shipping industries as well as in sewage treatment works.
The initial stage of the contract includes all processes originating from Alfa Laval's distribution centre in Staffanstorp and the production site in Lund, Sweden, to customers in Europe and worldwide. A two-month pilot exercise was run in Staffanstorp, to refine the systems and guarantee smooth logistics operations. Exel will manage the incoming and outgoing distribution of Alfa Laval's products from the production site in Lund and roll-out to additional European cities.
Exel operates a Control Tower for Alfa Laval's logistics. Underpinned by Exel's Supply Chain Integrator IT product, this Logistics Control Tower is an innovative solution that monitors all processes, events and product tracking. It creates full visibility throughout the supply chain and has an advance notification system which alerts personnel to any problems along the shipment route, enabling them to plan appropriate alternatives. This provides smooth, accurate and cost-effective supply chain management.
All processes previously handled manually by Alfa Laval will now be managed automatically by Exel. The Company will monitor all shipments and manage nine transport agencies for Alfa Laval which means that Exel will be its only point of contact for logistics and transport and handle all of its invoicing.
"Alfa Laval's co-operation with Exel has resulted in increased control and visibility throughout our whole supply chain with improved customer service. Exel has implemented a cost-effective tool, improving quality in an area which was not a core competence at Alfa Laval. Now we will go further, and implement this tool in other parts of our organisation, increasing the consolidation of our transport volumes resulting in further savings," said Knud Midtgaard, Vice President Operations, Alfa Laval.
"Exel enables our customers to outsource their entire logistics function and its control tower creates an opportunity to provide a single source solution. We are very pleased to see that the Logistics Control Tower satisfies all transport requirements for a global organisation like Alfa Laval," said Per Gustafsson, Director Sales and Marketing, Nordic and Baltic states at Exel.
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