Success Story: Reducing empty kilometers with Transporeon

Transporeon Gets a New Look

Starting on Monday, 25 October, 2021

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Customer

This customer is a pioneer in the global market for light alloy wheels, producing more than 20 million vehicle wheels each year. Quality, innovation, and customer focus guide the distinctive designs of its globally recognized car and truck wheel brands. Headquartered in Switzerland, the company has 11 wheel production facilities along with two tool manufacturing factories and it ships products to customers on three continents.

I would like to reduce our transport costs and on the other hand it is my mission as Head of Supply Chain to also maintain quality.

Head of Supply Chain

Challenges

Distributing alloy wheels and tools to prestigious vehicle manufacturers across Europe, including Alfa Romeo, Audi, Ferrari, Lamborghini, Maserati, Porsche, and VW, the company was challenged by:

High costs of inbound and outbound transportation: 2-3 fixed carriers per lane with fixed tariffs and fixed unloading/loading points
Too much time spent reviewing carrier invoices
Limited pool of certified carriers across Europe

Solution

The company selected the Transporeon cloud-based logistics platform with software-as-a-service Transporeon Transport Assignment, and uses two types of order allocation:

Fixed-contract assignment – to send transport orders automatically, allocating them to the company’s closed pool of carriers according to contractually predefined criteria
Day-by-day assignment – to decide 100% of its outbound export assignment (10 trucks per day) on a variable basis, seeking the best price-performance ratio from transport offers received from an expanded carrier pool

Results

LOWER COSTS

Within 12 months, cut direct transportation costs by up to 10%; carriers can reduce empty kilometers

CARRIER COMMUNICATION

Quick, single-click requests about carrier capacity and prices; Transporeon provides carrier support in 24 languages

BILLING CONTROL

Reduced the admin burden by a full-time equivalent of -15%; more time for value-adding tasks