Press Report

Sustainable increase in efficiency at cross-company logistics processes

(Frachtdienst 02.2007) The fact that the automation of transport processes across different locations has been neglected completely in many companies until now carries weight. In the light of rapidly increasing costs the automation of the supply chain execution has become a central issue. And with it the reduction of freight costs. Urs Rusch, Head of Global Logistics EMEA at the OC Oerlikon Balzers AG (Oerlikon Balzers Coating) sums up the situation after the introductory project for a software-based solution which automates the freight cost management has been concluded: "Now we have our freight costs under control." He adds with a smile: "Thus, we have reached a level which is unknown to quite a few logistics service providers." Indeed the freight cost management had only been developed rudimentarily at the pioneer and market leader in the field wear-resistant coating like in numerous other companies.

Urs Rusch realised that there are three steps for reducing freight costs permanently: through optimising the transport planning and -management, through negotiations of new freight rates with logistics service providers, and through the professionalizing of the freight cost controlling.

For optimising the transport planning and -management Oerlikon Balzers Coating has come to a basic decision which aims at the linking of all supply chain partners across different locations. The core of the solution is a web-based standard software for supply chain execution, i.e., the logistics-server® by inet-logistics. By choosing a solution which can be accessed by all partners the company has also ensured the smooth communication with its parent company Oerlikon, Switzerland. While the group is a SAP-user, Oerlikon Balzers Coating uses Navision. The web-based software has standard interfaces to both system environments.

Through the automation of the transport management the company has gained an overview of the actual numbers and types of transports. Oerlikon Balzers Coating broke new ground when it introduced a continuous freight cost controlling. The controlling enables the continuous examination of all freight costs with regard to functional aspects and the proper rates.

The higher data quality which can thus be won is rewarding for both sides. After all, erroneous freight costs are not generated on purpose but because of lacking transparency. "This opacity affects the ordering party and the service provider adversely in equal measure," explains Rusch.