Creating a new logistics organization for a global automaker

Challenge

Logistics had been focused on operational issues, with insufficient attention to strategy. The logistics function was scattered across the company and lacked consistency and coordination. In addition, the relationship with the company’s transportation department did not facilitate logistics flows.

Approach

• Baseline assessment: Interviewed logistics staff across the organization, internal customers and external supplier.
• Benchmarking: Assembled, from our consulting experience, a set of organizational options based on successful models employed at other companies.
• Roles and responsibilities: Logistics department skills and responsibilities were completely redefined, focusing on:
  • Defining cross-company logistics policies to help improve performance and foster international development.
  • The core businesses of logistics.

Results

• Logistics costs were reduced by 25% over a three-year period.
• Delivery cycle times were reduced by 50%, with improved reliability.
• The organization and logistics processes were revitalized.