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Volvo sees significant cost savings and visibility with BluJay Solutions
Technology Category
- Functional Applications - Transportation Management Systems (TMS)
- Infrastructure as a Service (IaaS) - Cloud Computing
Applicable Industries
- Automotive
Applicable Functions
- Business Operation
- Logistics & Transportation
Use Cases
- Fleet Management
- Supply Chain Visibility
- Track & Trace of Assets
Services
- Cloud Planning, Design & Implementation Services
- System Integration
The Challenge
Volvo looked to design and deploy a new transportation management system (TMS) that could serve as the backbone of its vehicle distribution network by planning, optimizing, and tracking shipments of all finished vehicles from its four global factories to 2,300 dealerships worldwide. Volvo established a list of goals for a transportation management system: bring consistency and efficiency to time-consuming, costly business processes, increase visibility across global operations, and improve agility and the ability to respond quickly to changing business dynamics.
About The Customer
Headquartered in Sweden and under the ownership of the Zhejiang Geely Holding (Geely Holding) of China since 2010, Volvo Cars is one of the most respected car brands in the world. The company was founded in 1927 and has approximately 29,000 employees worldwide. In 2015, it sold more than half a million vehicles in 100 different countries. Volvo is known for its commitment to safety, quality, and innovation, and has a global presence with production plants in Sweden, Belgium, China, and the United States.
The Solution
Volvo approached eight companies seeking a sophisticated, global TMS that could be ready to go in 150 days. After a competitive RFP process, Volvo chose BluJay Solutions to tackle the challenge of setting up a TMS that could integrate with 26 existing IT systems and handle 35,000 routes to market, 120 new EDI messages, and 30 existing carriers. The cloud-based architecture of BluJay’s Transportation Management solution allowed Volvo to meet its aggressive timeline and have a new TMS fully deployed within five months without experiencing any disruption to its supply chain. Since then, Volvo has experienced cost savings that were five times greater than expected. In addition, BluJay’s Transportation Management has delivered a significant improvement in performance, with dealerships reporting just a fraction of the issues compared to when Volvo was using an LSP to handle its transportation needs.
Operational Impact
Quantitative Benefit
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