Engine manufacturer Rolls-Royce has reduced its
transport costs by 6% after introducing a logistics system,
delegates at next week's AMR Research Supply Chain Conference in
London will hear.
The deployment, implemented by logistics firm TNT, helped
Rolls-Royce to overcome a lack of visibility and control of inbound
shipments, which was leading to shortages of production
materials.
Ian Shellard, director of global physical logistics at
Rolls-Royce, said the system had improved reliability and
flexibility.
The project entailed a bespoke combination of central
applications, on-vehicle technology, and interfaces with
Rolls-Royce's SAP enterprise resource planning system. Packaging
and labelling adherence, supplier compliance, interfacing of
technologies, driver training, and standardisation of processes
were all part of the programme, Rolls-Royce said.
Supply chain best practice guide
- Include stakeholders. Working collaboratively goes beyond
sharing data. Share ideas and screen the technology options and
approaches with your trading partners.
- Align incentives and compensation with goals. Getting
organisation and the process right is key, but also address the
incentive structure to align with new goals.
- Demand intelligence must be driven through the organisation.
Understanding demand is a good starting point for being market
driven, but it is not enough. Successful supply chains use the
sales and operations planning process to drive demand
intelligence.
Source: AMR Research