Impact of innovation in multinational supply chains

An interview with: Wouter Lammerse, CEO BlueRock Logistics

In multinational logistics networks many decisions are still taken locally. Fragmentation of planning methods, transporters, and rate- and IT-systems lead to a limited overview from a central perspective, compromised synergy of business units and high costs. BlueRock Logistics is developing a generic platform that provides insight into all logistics processes within multinationals. The web-based platform supports local users and improves the visibility of data and transactions. Applications can be simply deployed to support operational, tactical and strategic improvements. Apps for data analysis, what-if scenarios and optimization make the supply chain more efficient.

Subtitle Inefficient logistics

The logistics sector still harbors inefficiency. Wouter Lammers: “Many more kilometers are travelled in Europe than are strictly necessary and fleets are seriously underused.” Figures from Eurostat demonstrate that the average loads, despite the efforts, are about 45% of available capacity. “In addition, the number of freight movements is increasing globally each year and this has consequences for the carbon footprint, congestion and transport costs.”

Subtitle Local decision-making
Inefficiency in logistics can be due to fragmented decision-making. According to Lammers central control of goods flows is often difficult within a multinational enterprise, because many decisions are still taken locally, from the perspective of the local manager. “There is certainly room for improvement within many multinationals.” A good analysis of the goods flows and coordination can lead to a better network and improved planning. “The following step is the harmonization of the transport activities between partners and even competitors.”

Subtitle Rapid results
Lammerse: “Our approach is practical and realistic. We start from the existing situation and help our customers improve matters quickly and simply. Thanks to the customized approach, we have solutions for both large and small companies. The supporting infrastructure is scalable, so even the largest logistics operations can be tackled. On average, our optimization processes pay for themselves within a year and the ROI is tenfold.”

“There is certainly room for improvement within many multinationals.”

Results

• The Optimization Maturity Pyramid offers customers insight into the ‘maturity’ of their logistics network and where the first action is required.
• New platform with a generic logistics data model offers flexibility for the rapid development of applications.
• Development of applications for freight audit, TMS, data analysis, what-if-scenarios, optimization (network location options, planning, allocation).