Expedited Solutions Bring Greater Control to Tier 1 Supplier’s Automotive Supply Chain

Supply chain setbacks: Lack of visibility and support hinder ability to procure expedited capacity

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.

Achieving clarity through tailored logistics solutions

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:

• Pricing details: C.H. Robinson provides the all-in cost for each option. The tier 1 supplier uses the information to make an informed decision, balancing cost and speed, based on their needs.
• Carrier information: Knowing the C.H. Robinson team vets the carriers, choosing those that understand the urgency of just-in-time auto parts, helps build trust.
• Vehicle type: Details help pair the appropriate vehicle with each load, optimising efficiency and safety.
• Timing options: Precise delivery windows and transit times mean the company can better maintain their just-in-time production schedules, reducing the risk of delays.

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.

Strategic success for global delivery

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.

As the relationship with C.H. Robinson grows, so do the benefits:

• Greater operational clarity
  The company now has clear visibility and greater understanding into their expedited delivery spend. The ability to see precise cost breakdowns has streamlined budgeting processes and improved financial forecasting, contributing to better overall financial health.
• Control over transportation budget
  With the three-option model, the supplier gains end-to-end visibility, making it possible to prioritise critical loads and ensure high-priority deliveries are expedited while achieving cost savings on loads with more lead time.
• Strategic mode choices and cost savings
  By leveraging unmatched expertise and tailored solutions from C.H. Robinson, the company has reduced unnecessary expenses. Through flexible, multimodal capacity options from C.H. Robinson, their expedite costs are on average 28% less than DAT truckload. Year-over-year savings have also been achieved at key plant locations through strategic modal choices.
• More data-driven decisions
  Because delivering data is captured and shared through technology, not only is it accurate, but it’s also actionable. For example, when expanding into manufacturing EV batteries for commercial vehicles, C.H. Robinson helped them use their own delivery data to analyse trends, identify areas for improvement and implement changes based on solid evidence. All this helps the automotive manufacturer with their key performance indictors and sustainability goals.