SUPPLY CHAIN COLLABORATION WILL CUT AUTOMOTIVE COSTS, FINDS BIBBY-LED PANEL AT INTERNATIONAL FESTIVAL OF BUSINESS
25 June 2014
Collaboration in the supply chain is essential for cutting costs in the automotive industry, a panel discussion led by Bibby Supply Chain Services with speakers from Toyota has found.
In an event attended by key decision makers in the logistics and automotive engineering sector, Jonathan Ballard, Director of the Parts Supply Chain Group, Toyota Motor Europe, said that underutilised capacity in existing supply chains costs manufacturers dearly, but greater collaboration and partnership could dramatically cut those losses.
Ballard said: “By working more closely with our supply chain providers, we’ve managed to take out 20 per cent of our associated costs. We need to take a ‘total supply chain’ approach. That means synchronising manufacturing and logistical provision with real demand, something that’s only possible by working together and collaborating.”
Paul Byrne, Strategy Director, Bibby Supply Chain Services, explained the potential, saying: “At present, 29 per cent of vehicles running across all supply chains – not just automotive – are empty. That represents £7bn of underutilised capacity. A one per cent improvement will deliver a saving of £235m. Therefore it’s clearly in the interests of everyone to work together to tackle this issue, as we will all benefit if we work together.”
The lively panel also discussed the issues of collaborating either vertically or horizontally, with a general consensus that collaboration should happen whenever the opportunity was simply irresistible.
Iain Speak, CEO, Bibby Supply Chain Services, says: “Many challenges we face as businesses are too big to take on individually, but together, we are much stronger. There are various issues such as the need to attract top talent to work in our industry, or cutting down on empty vehicle running, which we can solve more effectively through collaboration across the supply chain. Bibby Supply Chain Services is already working to collaborate vertically with our customers, and horizontally with our competitors, and the result is that businesses are making real cash savings.”
Speak concludes: “This is helping us cut the cost of the supply chain while raising the bar for professionalism. We are proud to be at the forefront of driving forward better ways of working.”
Bibby Line Group is a Lead Sponsor of the Maritime, Logistics and Energy (MLE) thematic held as part of the International Festival for Business 2014 (IFB) in Liverpool. The roundtable debate was one of 30-plus events taking place during MLE as part of the six-week festival.
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About Bibby Supply Chain Services
Bibby Supply Chain Services incorporates Bibby Distribution, Bibby International Logistics, Packaging Logistics Services and Bibby Employment Services (incorporating System Training, Direct Workforce, Bibby Ship Management and Bibby Travel). The group provides a comprehensive range of distribution, transportation, training, employment, freight forwarding and packaging services throughout the entire national and international supply chain.
The company is part of the £1.4bn-turnover Liverpool-based Bibby Line Group, a
200 year old family owned business-to-business services specialist. It is involved in ship-owning and operation, shallow water accommodation, offshore oil and gas services, contract logistics, financial services, memorial parks, specialist plant & equipment hire and retail.
Bibby Supply Chain Services, Head office, 105 Duke Street, Liverpool, L1 5JQ.
Further press information:
James Boley and James Keeler at Garnett Keeler PR on 020 8647 4467 / james.boley@garnettkeeler.com / james.keeler@garnettkeeler.com
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