Challenge
In 1999 Scania invited 40 well-known Logistics Service Providers and 4PL to select one of them as Scania’s Lead Logistics Provider in the “Euronet 2000 tender” to cooperate in the achievement of Scania’s vision on logistics:
“To have a reliable logistic system which is continuously improved to reduce waste and to achieve the lowest total cost”
Challenges to be met:
Challenge #1
The Supply Chain Solution must secure the transport system (from order to pay) of more then 2.000 orders per day to and from 16 Scania Units throughout Europe and improve on safety, environmental, quality and reliability aspects.
Challenge #2
The Supply Chain Solution must follow Scania´s SPS thinking (Scania Production System) and integrate Scania´s suppliers. The Supply Chain Solution should be capable of achieving predictability, reliability and levelled flows throughout all the processes of the logistics chain
Challenge #3
All partners in the Supply Chain must find ways to jointly and structurally reduce their total Supply Chain Costs. Developments in the transport market must be considered in the Supply Chain Solution:
Challenge #4
The Supply Chain Solution must be a flexible system for growth and re-allocation of suppliers
Solution
To achieve its logistics vision, Scania has selected
e-Logistics Control as their Lead Logistic Provider. e-Logistics Control is an independent non-asset based company and a 100% subsidiary of Ewals Group.
As a Lead Logistics Provider, e-Logistics Control has total responsibility (control tower function) for inbound transport from all European Scania supplier to 16 European Scania production units, Scania European Central warehouses for spare parts and European hub for overseas transportation. e-Logistics Control is the single point of contact for engineering, implementation and operation, taking as well operational responsibility.
e-Logistics Control will:
- have total responsibility for inbound, empty packaging and Interplant transport.
- provide all and any services connected with such transport, including, but not limited to, design, implementation, operation optimisation and follow-up.
- steer and control the daily operation of the flows and be responsible for quality and environmental standards as well as fulfilling the financial part of the contract with the carriers.
- supply Scania with tracking & tracing information on request or subject to any deviations.
- focus on achieving tact in collections and deliveries, keeping agreed lead times and levelling the flows.
e-Logistics Control’s philosophy is to have a 3 party agreement with Scania together with the asset based carrier. This Philosophy increases involvement and control of Scania and the asset based carrier in the logistics supply chain solution.
Implementation
With the implementation of the e-Logistics Control solution, e-Logistics Control exceeded Scania’s’ expectations!
- Improved performance of the total network on Quality, Information and Delivery
- Reduce environment impact by
- using the right equipment
- using the right transport modality
- increasing equipment utilisation,
- balancing flows
- using the right carrier for the right job with co-loading possibilities of other clients
- Increase visibility throughout the complete supply chain by joint development and implementation of “Webstars”, which serves as a supply chain visibility tool on partnumber level.
- Substantial saving for Scania:
- Decreased transports costs, realised by co-loading synergy, increased utilisation and use of carriers in the area they are good in.
- Electronic communication between Scania, supplier, e-Logistics Control and carriers
- Levelled blow into Scania’s production unit.
- Freight payment management
- Increased Flexible; the set-up up of e-Logistics Control is able to grow witch Scania production and follow re-allocation of suppliers
Next to continuous improvement in supply chain engineering and Supply chain processes, activities like packaging coordination and other activities are executed by e-Logistics Control as part of a total trade off optimisation of Transport, Handling and inventory in the supply chain.
Nowadays 1st tier suppliers and other customers have joined the e-Logistics Control solution, which resulted as well in a win-win-win-win solution for Scania, the other customers, e-Logistics Control’s carriers and
e-Logistics Control.