Home / Automotive / A Transportation Management System Implementation in a Automotive Industry

A Transportation Management System Implementation in a Automotive Industry

I had a event to pronounce to Miguel Ramirez, Logistics Cost Implementation Lead, from Sisamex during a Oracle Oracle Value Chain Summit.  Sisamex has had an engaging tour with a Oracle Transportation Management (OTM) solution.  Sisamex, headquartered in Mexico, is a corner try between Meritor, a Tier 1 retailer of automotive components, and Grupo Quimmco, a Mexican industrial consortium.  Sisamex manufactures axles, brakes, associated components and assemblies in Mexico and reserve Meritor Meritor plants especially located in a US Midwestern states.

Sisamex has had an engaging journey.  Originally, Meritor was regulating their OTM doing to control all inbound and outbound loads to their plants located around a world.  Inbound to Meritor, meant Sisamex’s outbound loads were being designed by Meritor.  Because Meritor is determining a inbound shipments of their pivotal suppliers, they have a improved ability to control use levels while garnering assets from combined loads.

Because this was a corner venture, Meritor planners were also formulation all Sisamex’s inbound loads according to a determined corporate parameters.  In this case, inbound to Sisamex meant shipments from member suppliers, located especially in a US Midwest, to Mexico.  But a Meritor planners did not seem to be as committed during optimizing travel spend for Sisamex as they were when they designed shipments entrance into Meritor.  In particular, too many aloft cost mark bids were being used.

Miguel was given a goal of editing this problem.  He visited Meritor’s domicile in Troy, Michigan and spent 3 days training a simple functions of OTM.  At a end of this trip, Meritor concluded to let Sisamex use a Meritor instance of OTM to devise their possess inbound loads given that a burden was indeed being paid by Sisamex.

Sisamex put their lanes out to bid, and grown 5 conduit options per line with a carriers prioritized such that a proposal initial went to a elite carrier, afterwards a second rated conduit on that lane, etc.  In a initial year, their US burden costs fell by 30 percent interjection to a rejecting of mark bids and a traffic of full-truckload (FTL) rates.

Based on Meritor TMS experience, Sisamex, motionless to buy their possess server-based OTM resolution in 2012 with a arch advantage being that a complement could be parameterized according to Sisamex requirements. The complement was strictly launched in Jul of 2013.

After a company’s successful implementation, Grupo Quimmco, a holding association of Sisamex motionless to hurl it out opposite 8 other companies in a group. The vital design for this year is that a logistics operations of all a companies of Grupo Quimmco will be managed by OTM and there will be on-site control building screens so that a users in a plants can have evident prominence of shipments statuses.

After regulating this resolution for a year, Sisamex was means to cave a information and detect additional opportunities for savings.  For example, during one start indicate they saw that a retailer was promulgation their association 4 to 5 less-than-truckload (LTL) shipments per week.  They got that retailer to usually send them truckload (TL) shipments.  Last year, they saved a entertain of a million of dollars from usually one retailer by gaining some-more LTL to TL conversions. Similarly, they mandated that their suppliers usually send them shipments if a trailers were during slightest 90 percent full.

Article source: http://www.forbes.com/sites/stevebanker/2015/02/17/a-transportation-management-system-implementation-in-the-automotive-industry/

Scroll To Top