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Electrolux

Customer Case Study

Implementation of a global integrated solution for one of the world's largest appliance makers.

Overview

Electrolux, based in Sweden, is the world’s second-largest home appliance maker by market share. Shipping 75,000 containers per year and operating in over 150 countries. With unique requirements and antiquated legacy IT systems, Electrolux sought out a comprehensive transportation management solution.

Challenges

• A worldwide integrated solution with internal & external systems needed
• Internal systems included a number of legacy systems, JDE, SAP & custom build. External systems: 3PL and carrier portals
• Coordination of transport purchasing and rate negotiation
• Required full visibility of all transportation activities
• Replacement of manual planning & execution
• Management outsourced to numerous 3PL partners
• Low-cost country sourcing and new distribution dynamics required co- ordination of shipments from different regions and locations

Solutions

• Implemented Oracle Transportation Management for multi-model transport covering road, rail, ocean & air
• Transportation management and planning across domestic & international, inc. FTL, LTL, express, returns and home deliveries
• Customised solution to allow splitting logic to overcome an ERP constraint where delivery cannot be in multiple parallel shipments
• A customised solution to allow planning on production plan and execution when stock is available
• Supported upgrade to OTM 6.2.3

Results

• Standardised processes, worldwide visibility, event management and on- time delivery
• Reduced cost by increased filling rate & better carrier/equipment selection
• Transport cost reduction through load consolidation and carrier, route and tariff optimisation
• Easy access to group transportation contracts to secure best freight rates
• Proactive visibility and control through event management
• Higher efficiencies in supply chain planning through process automation
• Improved inventory management expenditures