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The Freight Best Practice initiative offers free specialist advice to

2nd November 2006
Page 14
Page 14, 2nd November 2006 — The Freight Best Practice initiative offers free specialist advice to
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Which of the following most accurately describes the problem?

help operators work more efficiently. In the seventh of eight Freight Best Practice case studies we f ind out how NYK Logistics' fuel bill was cut by E693,000 a year.

Who:

Jaguar Cars/NYK Logistics (UK) Manufacturing and Retail of Halewood, Merseyside

Fleet:

Accessible fleet pool of 400

Business:

The Halewood plant manufactures X-Type Jaguar cars. NYK Logistics manages the entire process of collecting components from the suppliers and delivering to the Halewood site, right through to the production line. This entails collecting 1,500 different parts from 212 suppliers (100 UK/112 Continental) with 80-100 scheduled truck arrivals per day.

Objective:

• Minimise transit times • Minimise the inventory in the transit pipeline • Provide on-time and scheduled shipments that are damage-free • Reduce total costs

Best Practice Initiative:

New supply-chain system run by NYK for Jaguar, including proactive management of transport from suppliers, using just-in-time principles ensuring

production materials are received where and when they are required. in the right quantities. Key factors in the process are said to be minimising inventory levels and short lead times, reduced handling, improved quality and quick response to change. Underpinning the initiative is a clear definition of roles and responsibilities between NYK and Jaguar, with a 'no-blame' culture and close communication.

Results:

Significant cost savings and environmental benefits were achieved by altering the logistics system, working in partnership with NYK Logistics (UK) Manufacturing and Retail.

• Increased efficiencies have resulted in a 55% reduction in stockholding over three years • Total waiting times have fallen by 70% • The time saving per day is worth £39,125. which comes to £9.08m per year • Vehicle utilisation has improved by 55% • Mileage has been reduced by 45%, equating to 2.13 million road miles per year • Annual savings of 1,066,270 litres of fuel have been recorded. worth £693,000 per year • Reduction in CO., emissions of 2,883 tonnes

For free advice on saving fuel and improving fleet efficiency see www.freight bestpractice.org.uk or call 0845 877 0 877.

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