Although the MHI Annual Industry Report has been explaining the types of benefits transformative technologies—such as inventory and network optimization, cloud computing and storage, artificial intelligence, blockchain and more—will bring to companies both large and small, not many early adopter use cases have been published. To share the outcomes of some of the first tentative steps piloting NextGen technologies, therefore, the first quarter 2019 issue of MHI Solutions profiles four companies and their experiences in the article, “NextGen Technologies in Action.”
Among those featured is Generac Power Systems which, after an extensive period of domestic and international acquisitions that grew the company from $588 million to $1.5 billion in sales, sought to identify efficiencies across its new global supply chain to support growth and contain costs.
Alan Rowlett Jr., Generac’s Director of Logistics, saw an opportunity to transition the company’s current transportation management system (TMS). Already in the midst of connecting the newly acquired companies to its SAP enterprise resource planning (ERP) system, Generac looked to leverage the power of network optimization and cloud computing via a new TMS from C.H. Robinson, Navisphere.
Cloud-based, the software gives Generac’s logistics management team the ability to optimize shipments, select the best mode, and experience near-real-time visibility worldwide by incorporating trucking, ocean, air, customs brokerage, port services, and data management.
“Global visibility provides a common framework to dive into the details,” Rowlett says. “That kind of visibility enables different and more profound dialogue about our supply chain overall and how we can use it to our advantage.”
Among the benefits Generac has seen include a reduction in inbound international expenses by 9% and containerized freight expenses by 14%; a multi-million dollar reduction in global freight costs; and 33% reduction in containerized freight shipments, he adds.
To read the full Generac case study, as well as additional coverage on Walmart, Coca-Cola and Hirotec America, click here.