Contents
Snapshot The challenge The solution The rollout Issues encountered Results Logistics finally catches up with ‘lean’ 1 2 3 4 4 5 5
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Inbound freight takes center stage | Page 1
Snapshot
Ford Motor Company
Key challenge
To balance inbound freight costs for thousands of parts across hundreds of suppliers with the high frequency of deliveries needed to support just-in-time (JIT) automobile manufacturing.
Solution
Ford deployed the Inbound Planning Engine from Viewlocity Technologies that considers multiple factors and constraints necessary to meet lean manufacturing requirements at the lowest possible cost. Factors considered included: • • • • • • • • Load sequencing across suppliers Quantities per load Trailer capacity Load configuration Dock schedules and capacities Production schedules Target plant inventory levels Return of part containers to suppliers
Upon consideration of all of these factors, the Viewlocity Inbound Planning Engine was used to determine the plan for the right quantity and delivery frequency for every part at the lowest possible cost. The Viewlocity Inbound Planning Engine was first employed by Ford Materials Planning and Logistics Group to support the launch of the company’s best selling F-150 pickup.
Results
Fewer transport miles, better trailer utilization, reduced partial truck load (LTL) and air freight and the integration of returnables into the primary logistics plan allowed Ford to save 5% on their total inbound freight costs.
