As part of a wider programme to reduce its carbon footprint Volvo Construction Equipment has targeted the reduction of ‘emergency’ orders shipped by air. Volvo Construction Equipment sends over 25,000 tonnes of spare parts around the world each year, and a project to manage global aftermarket parts distribution has, over the past five years, lead to a 30% reduction in the proportion of Volvo parts sent by air.
Volvo Construction Equipment now offers a stock availability that is among the highest in the market, with service levels exceeding 95% from dealer to end customer. “Our dealers were pleasantly surprised when they saw how quickly service levels increased, while rush-orders and transport costs plummeted,” says Jan Paulsson, Manager of Global Manufacturer Managed Inventory & Logistic Support at Volvo Construction Equipment.
“When dealer service levels increase, the need to ‘emergency’ ship by air decreases and more material can be sent using carbon-conservative transport methods, such as sea freight,” comments Hakan Amnas, co-founder of Syncron, the company whose Supply Chain Planning software Volvo Construction Equipment is using.
Syncron has also been participating in Volvo Construction Equipment’s AirShare Reduction scheme, an initiative that reviews the lifecycle of the company’s machines. Not only did this programme lead to large capital reductions in the supply chain, it also contributed to increased service levels for the end customer.
“We believe that it will not be economically viable for anyone in our business to avoid the question of ‘sustainability’,” says Anders Grudén, CEO of Syncron. “Everyone needs to prepare for future changes in legislation and demand. Our goal is to support sustainability to the greatest extent possible and to work with our customers to raise the bar in ‘green’ supply chain.”
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