Limited logistics program integrations meant a tier 1 auto supplier faced high costs and frequent expedited shipments due to supplier delays and just-in-time inventory needs.
C.H. Robinson provided a comprehensive, expedited-driven logistics solution offering transparent spend reporting, reliable carriers, and flexible options tailored to the company's needs.
The supplier achieved cost savings, improved reliability, greater visibility, and gained control over their logistics operations, enhancing overall supply chain efficiency.
Automotive supply chains are among the most demanding in the world. The just-in-time (JIT) manufacturing process, combined with the global nature of automotive supply chains means the precise co-ordination of suppliers, manufacturers and distributors isn’t just advantageous—it’s a requirement.
Manufactured components must be delivered exactly when needed to minimise inventory costs, keep production lines moving and maintain deadlines. There is little room for error.
Based in a strategic automotive hub in the Detroit Metro area with 80+ locations worldwide, a tier 1 automotive supplier’s broad footprint helps meet the shifting demands of their customers, but it also adds another layer of complexity to their integrated supply chain.
Because the company struggled to gain sufficient visibility to each location’s activity across modes, they set out to find a new provider that could help. The company wanted one provider that could provide both fourth party logistics (4PL) services at the global level as well as act as a third party logistics provider (3PL) to help manage the day-to-day work—especially around the clock expedited procurement.
C.H. Robinson began by understanding and addressing specific issues at each individual plant location. With this background information, it was clear where, when and why expedited deliveries were needed.
Tailoring a solution for each plant’s requirements often involved analysing other modes that could achieve the same results. Then comparing the cost and efficiency of each mode against the existing expedited strategy.
The solution from C.H. Robinson requires each plant to enter their delivery requests into Navisphere®, then C.H. Robinson provides a minimum of three transportation options for every delivery. Each option meets the specific needs and expectations for that delivery as well as follows automotive industry best practices. Every quote includes:
Today, the company trusts C.H. Robinson to manage the transportation for over half of their business. TMC, a division of C.H. Robinson, also acts as a 4PL provider, providing hourly tracking updates, streamlining communications and boosting visibility.
Through their collaboration with C.H. Robinson, the automotive manufacturer has streamlined their expedited delivery operations across the decentralised organisation. Today, the manufacturing leader works with C.H. Robinson to move over 150 expedited deliveries each month. Since the relationship began, the company has successfully expedited 12,600 ground and air deliveries with help from C.H. Robinson, both globally and domestically.