GM--Supply Chain Accountability & Visibility Exceeds Expectations

The results of Penske’s three-phase plan have exceeded GMM’s expectations.  To date, Penske has substantially reduced GMM’s transportation costs, decreased its inventory and premium freight costs, and virtually eliminated assembly line shutdowns.  In addition, the delivery of damage-free parts has been increased by 20 percent.

"Penske has implemented more than a cost-reduction plan.  They've changed the way inbound transportation operates at the individual level.  GMM operates with a new degree of accountability - it has enabled us to maximize our best performers, while weeding out the liability of low-performers." Roger Peterson, director of production control and logistics, General Motors

The implementation and deployment of Penske's LMS software has undoubtedly played the biggest role in improving GMM's inbound transportation efficiency.  Using this software, Penske's system operators can provide carriers precise routing and scheduling information on a daily basis, while tracking exact part numbers and pick-up quantities.  The LMS software has also been the catalyst for new transportation processes that increase overall carrier accountability.  Upon completion of each task, drivers are required to call their dispatchers, who then log the completed activity into the LMS website.

For the first time, Penske operators have instant access to real-time updates from every aspect of the supply chain.  Penske's LMS software proactively alerts operators of any carrier delays, reducing the amount of follow-up time previously expended by operators.  In turn, operators are then able to evaluate alternatives, such as engaging another carrier or expediting freight, to ensure service windows are met using the most cost-effective methods.

Penske has also provided GMM with the ability to track, measure and rate the performance of all parties involved in the supply chain.  With greater visibility of all inbound transportation operations, supply chain foul-ups are easily identified and handled.

Every aspect of supplier and carrier performance is tracked on a scorecard, allowing Penske to weed out parties performing at sub-standard levels.  Within the first year of implementation, Penske reduced GMM's carrier base from 100 carriers to 20.  This level of accountability has dramatically improved supplier and carrier performance.  Window times for supplier pickups are currently being met 98 percent of the time, while delivery window times are being met at a rate of 99 percent.