European auto manufacturer reduces transportation costs

July 21, 2022
Team 3TO

A global logistics and shipping solution provider needed to optimize the US inland transportation for a European auto manufacturer. A market leader in car distribution, the global company helps its customers build sustainable supply chains.

Business Situation

The European auto manufacturer was expecting sales growth in the United States and needed a more cost-effective distribution network. Products were imported from Europe and made domestically.

Additional ports-of-entry were considered in order to minimize inland miles & cost. The model also included comprehensive ocean, port and inland transportation costs.

Solution & Results

We built and exercised a network design model to optimize the current network & prepare for additional product sales in the US market for the European auto manufacturer. The solution included an optimized choice of European port-of-departure to minimize end-to-end transportation cost.

We identified over 12% savings in the network, by introducing two new ports-of-entry. The solution reduced inland transportation & associated costs from the East Coast into the central part of the US by using new ports.

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