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.