Articles, Blog

Real-time Control Tower enables faster incident response in Finished Vehicles Logistics

October 10, 2019


Finished vehicle logistics involve
complex pre-sale operations. For this reason in addition to storage and
transportation capabilities most 3PLs working in this area operate vehicle
processing centers to provide additional services such as fitting manufacturer
accessorization and customization requirements and performing Pre-Delivery
Inspection. Due to this complexity and to the volatility in the automotive
industry, we know that disruptions of the
supply chain in finished vehicle logistics are more likely to occur their effects are
more difficult to project and resolving them is often longer and more costly
than in other industries. In this demo we will show you how current 3PL clients of
the cloud-based ActiveViam platform can detect potential issues well in advance
and respond within minutes where previously took days. How they can
maintain a high service level and improve customer satisfaction, and how
they significantly reduce their costs by avoiding last-minute adjustments.
The ActiveViam Control Tower offers real-time visibility at every step of the supply
chain and on the status of each and every vehicle. It shows the vehicles
stationed in the compound the cars coming in from the factory, the ones on
route to dealers and those that are currently inside the vehicle processing
center. It’s designed from the outset to integrate data continuously from
multiple sources including your TMS ERP and CRM applications, to ensure you have
the complete picture of your supply chain in one place. Because it runs in
the cloud the platform can be deployed quickly and with little to no IT
investment as we offer a comprehensive customized hardware and software package.
It scales to your needs and can be accessed simultaneously by anyone in the company with the right credentials and even remotely by your own clients if you
want, as a good way to make decisions even more quickly and improve their
satisfaction. ActivePivot the engine at the heart of the ActiveViam platform,
doesn’t just let you look at the past or present. It integrates projections and
forecasts alongside real-world view. By constantly updating data and matching
current events with forecasts of demand, deliveries, supply, stocks and more, it anticipates any issue that might come
from a discrepancy between the two. What makes the ActiveViam platform different
and better is that it’s not just a tool for intelligence and visualization. It’s
a full solution for operational decision-making and incident resolution
that we created and improved over the last five years working closely with our
clients and Finished Vehicle Logistics We’ll see what happens now when the
platform detects an incident in the supply chain.
Here the incident is rather good news for our client: we have an upsurge in demand from three top-level dealers almost simultaneously. Separately those spikes would not have any
significant impact on the Service Level our main KPI.
However ActivePivot has calculated that taken together the peaks in demand
compared with the available Vehicle Processing Center and transportation
capacities will cause our Service Level to drop below an acceptable level.
ActiveMonitor the smart alerting product of the ActiveViam platform, sends us a
notification immediately, which means that we still have a few days to deal
with the problem, instead of finding out about it when it’s already too late.
By opening the notification generated by ActiveMonitor I’m taken to a view that
shows the entire end-to-end impact of this upsurge in demand I can see exactly
which make and model of vehicles I would need to fulfill the demand and which
dealers would be delivered late in the current configuration. In this case I
have enough of the right cars in my compound, but the problem is that the
Vehicle Processing Center will not be able to process so many vehicles in this
time frame which in turn will cause some cars to miss the departure of the trucks
that are scheduled to dispatch them and others to dealers.
With one click I create a splinter simulation environment where I can work to quickly find the
best solution possible.
The red cells show me the bottleneck in capacities and
transports I can hire extra trucks to carry just the late cars to the dealers
and add more capacities in terms of storage and throughput to the Vehicle
Processing Center the platform shows me right away the impact of this solution
in terms of costs. I see also that I still have an issue with some
high-priority dealers, so I have to come up with something else.
Another option seems more appealing: I can change the priority of the most
impacted dealers and give them a better rank. This will lead to processing their
vehicles first and they will be delivered on time.
Some dealers will still be delivered late but to a lesser extent, and they are in lower priority
categories. The additional cost incurred by this new configuration is reasonable
and more importantly it will keep my service level above the minimum
acceptable. I send a validation request for this new configuration to my manager.
He receives it on his dedicated mobile application. After reviewing the proposal,
he validates it with a single tap. Because ActiveViam is also connected to
the execution systems, the relevant people on the ground are notified of the
changes, with no need to waste time with an email chain or to manually input the
same information several times in separate systems. The ActiveViam platform provides our clients with a view of their operations that is at the same time global detailed and continuously updated. Furthermore the ActiveViam platform does not stop at just visibility, but also provides an environment for quick confident decision-making with a clear view of all the consequences of your choices and of the effect on your KPIs.
Because it runs in the Cloud it can be deployed very quickly and with a small IT footprint.
Supply chain professionals know that you can’t prevent disruptions entirely.
Shortages, peaks, accidents or strikes will always happen with it best a few
hours or a few days of advance warning. The Finished Vehicle Logistics companies
that get ahead focus on minimizing the cost and time of disruptions to maintain
or improve customer satisfaction. This is exactly what our clients achieve with the ActiveViam platform.

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