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International Truck & Engine: Understanding the Business is Critical in Selecting a Lead Logistics Provider

Summary

International Truck & Engine is a leading producer of commercial trucks, mid-range diesel engines and IC brand school buses, workhorse brand chassis for motor homes and step vans, as well as, a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. They needed logistics services from a provider who understood the fundamental differences between the manufacturing and distribution of cars and trucks. Penske’s unique combination of automotive and trucking experience made us the clear choice. Since then we’ve evolved from an International Truck & Engine customer to its lead logistics provider (LLP).

Challenges
Solutions / Results
To reduce inbound transportation costs by replacing disparate, plant-managed inbound materials networks with a centralized, single network.

To streamline supplier operations and provide International with real-time supply chain visibility.

To improve plant productivity levels with less labor.

 Penske designed and implemented a network of Origin Distribution Centers (ODCs) to process shipments of production material for truck and bus manufacturing facilities.  Inbound Supply Chain expenditures have been reduced by more than 17 percent annually.

Penske trained more than 900 suppliers on a uniform set of procedures and logistics technologies.  Penske’s proprietary logistics management software tracks orders, schedules delivery and pickup windows, determines routes, tracks order and delivery status, and automates invoicing.

Penske line-side production support at two plants has increased production by more than 250 percent with only a 25 percent increase in headcount.




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