215 Eppley Center
East Lansing, MI 48824
517.353.7240
think@spartanconsulting.org
Delphi Technologies, Inc.
Project: Premium Freight Utilization
Client:
Delphi is a world leader in mobile electronics, transportation components, and systems technology for the automotive industry.Business Environment:
Delphi had a Midwestern component factory that was unable to perform value adding processes on a particular component due to capacity limitations. These limitations required Delphi to use premium freight to transport the component to a foreign manufacturing facility for temporary processing in order to prevent work stoppage in the midwestern factory. Due to the high costs of transporting this component between factories, Delphi contracted Spartan Consulting to review its premium freight usage and recommend potential milk run logistic lanes between suppliers and partner installations in the regionApproach and Solutions:
- Analyzed premium freight usage for the facility based on different carriers, modes, lanes, dollar values, weights and volumes.
- Identified opportunities for consolidation of shipments between several facilities and across numerous shipping modes.
- Recognized and quantified potential cost savings from moving some shipments from higher cost modes to ocean freight.
- Applied the principles of economies of distance and scale to identify same-day shipments for possible consolidation.
- Identified and segregated routine shipments for movement on scheduled milk run lanes.
- Forecasted trade-off costs as they apply to increased inventory and decreased service as material is shifted to less costly and slower transportation methods.