Schmitz Cargobull Expands Supply Chain Visibility to Fulfull Delivery Promises With Everstream AnalyticsEverstream Team
“With Everstream Analytics, we gain better visibility of our end-to-end supply chain, and we’re aiming to expand this view to our first tier suppliers and our outbound supply chains. By integrating Incident Monitoring functionality into our supply and delivery processes, we are able to anticipate events and avoid disruptions, and reserve alternative resources before the competition can, effectively safeguarding the delivery of each customer order.”
– Peter Schonefeld, Head of Supply Chain Management, Schmitz Cargobull AG
Schmitz Cargobull AG is Europe’s leading manufacturer of semi-trailers and trailers, with annual production in excess of 45,000 vehicles and turnover of €1.6 billion. As a pioneer in the industry, this family-run German company attributes success to its comprehensive brand strategy, consistent quality standards, and fulfilment of delivery promises despite short lead times and high demand volatility. The company operates today on a global scale, with plants across Europe and Asia (China), and requires optimal network transparency to handle longer, more complex supply chains featuring greater interdependencies. With Everstream Analytics, Schmitz Cargobull not only improved their supply chain visibility, but is now able to more proactively protect on-time delivery of their customer orders.
Following rapid business growth and expansion into new geographies, Schmitz Cargobull needed better supply chain visibility and transparency on logistics flows, right down to component level (e.g., axles, tires, etc.) – a considerable challenge in this automotive sub-sector which is characterized by extremely short lead times. Trailer customers can typically change their order right up to the point of production. Some custom-built items must be urgently produced within 18 hours and the frozen zone begins only 10 hours before production starts. The trailer subsector also features high demand volatility, requiring just-in-time and 100% make-to-order inbound supply chain processes.
Schmitz Cargobull also aimed to obtain a global yet detailed view of daily events (strikes, weather alerts, public holidays, etc.), especially any events impacting their own production sites or their supplier base all over the world. Furthermore Schmitz Cargobull wanted to build awareness and knowledge of Tier 1 suppliers and the outbound distribution network to improve efficiency and reduce logistics costs. Schmitz Cargobull has a broad supplier base located in 19 countries; these suppliers input to a total of 8 production facilities, and there are drop-off points for finished trailers in 25 countries. Supply chain visualization was therefore an essential step to creating a comprehensive disruption management system for Schmitz Cargobull.
Everstream Analytics Solution
The Everstream Analytics team provided Schmitz Cargobull with an interactive global map of its end-to-end supply chain. This captures the logic of network interdependencies, both upstream and downstream, and provides a multi-tiered view of all key component suppliers and logistical locations. Easy-to-use search and filter capabilities enable Schmitz Cargobull supply chain executives – each responsible for specific production components – to monitor products, parts, materials, and other sub-network attributes. This interactive solution enables Schmitz-Cargobull to achieve valuable route visualization and derive views on material logistic movements.
– Improve visibility of inbound-to-manufacturing supply chains and logistics flows
– Obtain a global yet detailed view of
daily events impacting suppliers and
– Build awareness and knowledge of Tier 1
suppliers and the outbound distribution
network to improve efficiency and reduce
Everstream Analytics Solution
Everstream Analytics’s innovative supply chain risk management solution supported Schmitz Cargobull with:
– Supply Chain Visualization: Mapping the
material flow and supplier clustering
– Incident Monitoring: Providing simple,
efficient 24 / 7 alerting on potential supply
chain disruption in near-real time and
– At-a-glance end-to-end supply chain
visibility at production component level
nn Enhanced capability to fulfill delivery
– Opportunities to improve Tier 1 supplier
efficiency and outbound distribution
nn Identified new potentials to drive down
For Schmitz Cargobull, supply chain visualization helped to identify two significant risks – the potential for bottlenecks in the road network located in the south eastern region of Europe, and the relative unfamiliarity of operating in China.
The DHL team customized a supply chain incident monitoring platform which provides 24 / 7 near real-time alerting and feedback loops on disruption occurring anywhere in the world. DHL and Schmitz Cargobull cooperated closely to configure dedicated incident alerting profiles that would ensure each member of the supply chain team would receive only relevant e-mail alerts. This platform also provides a feature to manually add incident, enabling Schmitz Cargobull to quickly disseminate information about its network incidents across the organization (and not in the public domain).
This user-friendly, integrated web based platform enables Schmitz Cargobull to easily track and prepare for incidents well before they become threats and can be accessed anytime and anywhere in the world. The organization can now plan and arrange emergency shipments to stay ahead of the competition and save production, so business never slows down and customer orders can be delivered on time.
As a testament to the flexibility of Everstream Analytics, DHL has also created more than 10 new solution features to meet Schmitz Cargobull’s specific needs, including a customized product view which connects sites and products according to the customer´s organizational structure. Further longterm development is planned to more closely tailor Everstream Analytics to Schmitz Cargobull´s make-to-order supply chain processes.
Schmitz Cargobull has achieved end-to-end supply chain visibility at production component level with a significantly lower investment of manpower than in the past. The organization enhanced its capabilities to fulfill delivery promises, thanks to proactive alerting on potential supply chain disruptions in the inbound and outbound logistics flows. Everstream Analytics also provides Schmitz Cargobull with the ability to improve efficiency by monitoring Tier 1 suppliers and protecting Tier 2 suppliers. Schmitz Cargobull and DHL are expanding the alerting scope to critical parts of the Tier 2 supplier base.
Schmitz Cargobull also benefits from improved demand forecasting at supplier materials level. For example, Schmitz Cargobull was not impacted by strikes in Germany and Turkey because with the help of “Incident Monitoring” the SC-organization was able to proactively increase buffer stock before this disruption could affect its operations. In addition, visualization also helps Schmitz Cargobull to reduce logistics costs by identifying potential supplier exwork transformation and supplier consolidation projects. A useful spin-off of this new visibility is that Schmitz Cargobull is saving on travel costs by rationalizing its worldwide supplier audit activity.