GMSA and UTi Scoop Logistics Award

www.MyPE.co.za:
General Motors South Africa (GMSA)
and UTi were winners of the Platinum
Award at the annual Logistics Achiever Awards ceremony held in
Johannesburg recently, for the design and implementation of an
internationally integrated supply chain.

The supply chain initiative, called Euro Express, is a joint venture
between GMSA and UTi which was implemented five years ago. According to
Evan Dold, GMSA vice president of Global Purchasing and Supply Chain,
the focus of the initiative was to identify and create a solution to a
fragmented European supply chain that was negatively impacting local
production. “Before the implementation of this initiative GMSA
constantly faced challenges of production down time due to delays in
parts sourced from Europe,” said Dold.

He added that the implementation of the Euro Express system resulted in
a win-win situation for all concerned – GMSA, UTi, the suppliers,
Collaborative Xchange and the shipping line.

Sean Bricknell, logistics manager who managed Euro Express project from
inception to end, explained that the initiative entails careful
coordination of multiple parties within multiple organisations in
various locations in Europe. The supplier network was modelled using
sophisticated software and economically beneficial consolidation
centres were established in key locations. In addition modular
packaging was designed for parts that previously had high packaging
costs, poor box density and poor container utilisation. “A crucial part
of the success of Euro Express was the buy-in from all stakeholders.
They needed to understand that they would benefit from both the
operational efficiency improvements and cost savings opportunities
associated with the successful implementation of the initiative,” said
Bricknell.

Since the inception of Euro Express GMSA has not experienced a line
stoppage on these parts, Dold added. Furthermore, stock on hand was
reduced by half – from 20 days to 10 days supply, damages were
significantly reduced and container utilisation was optimised to 95%
from 75%. “Over the last five years these improved efficiencies saved
the company approximately R80 million,” Dold said.

Paul Marshall, UTi Africa’s Vice President Industry Markets and New
Services, said this solution is an excellent example of what can be
achieved where UTi is empowered as the Primary Logistics Partner to
deliver end-to-end solutions that enhance quantifiable supply chain
value. “The award bears testimony to the value and innovation that
working in partnership with our clients can optimise service delivery,”
said Marshall.

UTi
Africa
President, Gavin Rimmer added, “We are proud of our
long-term relationship with GMSA and were thrilled to accept this award
on behalf of both our Freight Forwarding and Contract Logistics teams
in Africa and Europe that made this happen.”

Source: PERCCI.

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