Barloworld Logistics in world-first for US-based Navistar
Supply chain management major Barloworld Logistics has announced the spectacular results achieved in the first year of its distribution optimisation contract with Navistar International, a US-based manufacturer and distributor of commercial vehicles, engines, parts and services. Barloworld Logistics handles the outbound distribution and management of Navistar’s Southern African Parts Distribution Centre (PDC). This is the first time that Navistar has outsourced any of its distribution operations globally.
After forming a wholly-owned South African subsidiary, Navistar appointed a number of new dealerships, as well as, at the end of 2008, putting major investment into a new (PDC) for the entire Southern African region.
Barloworld Logistics was tasked, from early 2009 onwards, with managing both the PDC and outbound distribution on behalf of Navistar, in order to meet their major business objectives of maximising vehicle uptime for their customers, and growing Navistar’s market share in sub-Saharan Africa, through capitalising on the existing network of dealerships in Southern Africa. Says General Manager, Supply Chain Management at Barloworld Logistics, Jacques Kruger, “The real feather in the cap for Barloworld Logistics is the trust Navistar has shown in us to make our arrangement the first outsourcing of any of its logistics operations at any of its PDCs globally.”
Barloworld Logistics manages the entire PDC facility as well as the outbound distribution of all parts on behalf of Navistar. Containers received are unpacked, sorted and distributed to 15 dealerships around Southern Africa.
Kruger continues, “We currently occupy 4200m² floor space with 4000 line items valued at around R15 million. There is a 0.15% variance in stock availability with a 99.85% stock accuracy and sales continue to improve. Since the go-live of the project on 2 April 2009, we have had no glitches and have achieved all set targets and time lines.”
Concludes Navistar COO Bob Jones, “the key to the success of this operation has been the way Barloworld Logistics has partnered with us to introduce and maintain lean manufacturing and operational principles throughout the PDC. It has become a proud example for us of what cost-effectiveness and operational excellence can do for the business in terms of top-line growth as well as the bottom line. We hope to see the fruits of our joint efforts for some time to come.”
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