New industry-wide initiative to dramatically reduce supply chain costs
HERE Technologies, a global leader in mapping and location services, and FreightVerify, a cloud-based supply chain technology company, has announced a strategic collaboration to radically transform how the automotive industry optimises their logistics and supply chain.
The companies, building on their existing offerings, intend to deliver for automakers a comprehensive solution for real-time tracking, logistics optimisation, and the opportunity to successfully participate in new logistics sharing models.
“Logistics is poised for radical disruption due to advanced collaborative technologies,” said, Lorne Darnell, founder and chairman of FreightVerify. “One of the fundamental requirements necessary for these new business models is real time end-to-end visibility of shipments across the supply chain ecosystem.”
The combination of HERE’s industry leading, geolocation technologies with the innovative FreightVerify logistics solution will enable a new disruptive exchange model within the global automotive supply chain. OEMs for the first time will have the ability to share freight loads on-demand.
“With millions of moving parts, automotive supply chains are incredibly complex,” said Leon van de Pas, SVP Internet of Things at HERE Technologies. “Our proof of concepts with two OEMs has shown that tracking technology boosts supply chain efficiencies. By teaming up with FreightVerify, and linking our complementary capabilities, we can now together deliver a powerful commercial solution to the industry.”
In their preliminary agreement signed today at CES 2018 in Las Vegas, the companies outlined several initiatives.
In the first phase of deployment, the companies will provide a visibility solution allowing an OEM to use real-time tracking technologies and analytics to keep close tabs on inbound and outbound logistics. This means the OEM will be able, in real-time, to track inbound materials and parts from origin to ocean container, to train car, to truck, to warehouse; track materials as they move within and between production sites; and track finished vehicles as they move from factory floor to dealerships, fleets, and other end customers.
The second phase will focus on deployment of on-demand load sharing services. Dr. Yossi Sheffi, FV co-founder, MIT professor, and director of the MIT Centre for Transportation and Logistics, has projected that enabling freight matching services over a network will help OEMs reduce costs by more than 24 per cent. These services will allow the optimisation across the many fragmented logistics networks in place today, in addition to enabling carriers to optimise their own operation, reducing supply chain costs even further.