Nokia has reported big improvements in the performance of the inbound supply chain to its factory at Cluj in Romania from a pilot project run in collaboration with Agility.
The trial, run over a period of two months on shipments from Hong Kong to the Cluj factory produced double-digit cost savings on transport, 100 per cent on-time performance, zero damage to goods and succeeded in halving total transit time.
Robert Srumf, director global logistics service provider management and inbound logistics at Nokia, said: “As a world leader in our field, focus on innovation in our supply chain has been of critical importance to us.”
The benefits are delivered by systems that link Agility’s Hong Kong receiving centre to Nokia’s factory in Cluj. The centre, named the Nokia Goods in Transit Centre, is a key element in the process.
Automated on-line booking tools enable vendors to automate the release process, and carton level inventory is confirmed, providing inbound visibility for production planning.
Dedicated Nokia cargo space is secured through smart configuration of air carrier and cargo, resulting in elimination of waste in the air cargo supply chain. The system provides accurate and comprehensive cargo information to the Nokia factory in Romania before the goods leave Hong Kong.
Since data on inventory is captured in advance, the factory can begin the receiving process as soon as the shipment is airborne, saving significant time. Special handling arrangements at the factory enable break-down of one large unit in less than an hour – a substantial operational gain.
The service is now live and in full operation and is being expanded to include mainland China.
“From both economic and ecological standpoints, this approach creates a double win by decreasing cost as well as CO2 emission. Working closely together, we have brought our supply chain onto a new level. Agility helped us create what we were looking for – an efficient integrated supply chain solution – and very quickly too – with little elapsed time between concept and implementation,” said Srumf.
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