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Case Studies > Generac meets rapid growth with global supply chain visibility

Generac meets rapid growth with global supply chain visibility

Technology Category
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
  • Functional Applications - Transportation Management Systems (TMS)
  • Application Infrastructure & Middleware - Data Exchange & Integration
Applicable Industries
  • Consumer Goods
  • Equipment & Machinery
Applicable Functions
  • Logistics & Transportation
  • Procurement
Use Cases
  • Supply Chain Visibility
  • Fleet Management
  • Predictive Maintenance
Services
  • System Integration
  • Data Science Services
The Challenge
Generac experienced a period of rapid growth post-IPO, acquiring companies around the world. They needed to revamp their global supply chain and integrate operations as rapidly as possible. When Alan Rowlett Jr. joined Generac as director of logistics in early 2016, the company had selected SAP to be its new Enterprise Resource Planning (ERP) system. Connecting the newly acquired companies to SAP was underway, but current transportation management system (TMS) functionality needed a boost to support the company’s growing logistical demand. Generac had a goal of better understanding their overall transportation spend across a multitude of transportation providers and identifying potential efficiencies.
About The Customer
Founded in 1959, Generac Power Systems (“Generac”) was the first to engineer affordable home standby generators and is now the #1 manufacturer of home backup generators. They take pride in protecting the things that power our lives by providing quality, affordable power solutions. With Generac issuing their IPO in 2010, it further facilitated the company’s growth from $588 million to nearly $1.5 billion in sales, enabling acquisitions both domestically and overseas. Generac saw the opportunity to review their global supply chain and identify new efficiencies to enable the next stage of growth.
The Solution
Generac and C.H. Robinson collaborated to develop a comprehensive, global supply chain solution. The solution incorporated trucking, ocean, air, customs brokerage, port services, and data management, and provided full visibility. The most impactful decision Generac made was to integrate their ERP with Navisphere®, C.H. Robinson’s single global TMS platform. In addition to handling EDI transactions, implementing Navisphere helped Generac standardize operations across business lines and geographies and obtain shipment visibility across multiple languages, regions, and modes. Generac worked with TMC, a division of C.H. Robinson, to automate processes through Navisphere. Today, Generac uses Navisphere to manage their complex and robust supply chain that serves thousands of customers. The technology enables the company to optimize shipments, select the best mode, and experience near real time visibility across the globe.
Operational Impact
  • Generac worked with C.H. Robinson to identify key metrics of success and actionable reporting that enables continuous improvement.
  • Vendors communicate with Generac using a variety of methods, including EDI, online order entry, phone calls, and emails in multiple languages.
  • Generac has reduced their inland containerized freight by nearly 33 percent and reduced costs by implementing a new solution.
Quantitative Benefit
  • Reduced inbound international expenses by 9% and containerized freight expenses by 14%.
  • Neutralized pricing increases, despite an FSC change from 18.7% to 22% in 2016.
  • Reduced containerized freight from LA Long Beach to Whitewater, WI, by 33%.

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