Baar, Switzerland - September 6, 2011 - Agility, a global logistics provider, and Nokia have launched a major supply chain initiative resulting in significant reductions in transport cost, end-to-end transit time and carbon emissions, while offering increased visibility of inventory, high levels of security and stability of shipment transit.
A pilot trial over a period of two months on shipments from Hong Kong to Nokia’s factory in Cluj, Romania, delivered double-digit cost savings on transportation, 100 percent on-time performance, zero damage to goods and succeeded in halving total transit time. The service is now live and in full operation. Due to the success of this program, Agility and Nokia have expanded the program to include mainland China.
The benefits are delivered by high-tech solutions that link Agility’s Hong Kong receiving center to Nokia’s factory in Cluj. The center – named the Nokia “Goods in Transit Center” (GIT-C) – is a key element in the solution and it is there that a number of innovative processes are implemented, each delivering real business benefits:
- Automated on-line booking tools enable vendors to automate the release process
- Carton level inventory is confirmed, providing inbound visibility for production planning
- Dedicated Nokia cargo space is secured through smart configuration of air carrier and cargo, resulting in elimination of waste in the air cargo supply chain
- The high-tech solution delivers accurate and comprehensive cargo information to the Nokia factory in Romania before the goods leave Hong Kong
Since data on inventory is captured in advance, the Nokia factory can begin the receiving process as soon as the shipment is airborne, saving significant time. Special handling arrangements at the Nokia factory enable break-down of one large unit in less than an hour – a substantial operational gain.
“Focus on innovation in our supply chain has been of critical importance to us,” said Robert Srumf, Director Global Logistics Service Provider Management & Inbound Logistics, Nokia. “From both economic and ecological standpoints, this approach creates a double win by decreasing cost as well as Co2 emission. Working closely together, we have brought our supply chain onto a new level. Agility helped us create what we were looking for – an efficient integrated supply chain solution – and very quickly too – with little elapsed time between concept and implementation.”
“The success of the program can be attributed to close collaboration across our combined teams,” said Essa Al-Saleh, President & CEO, Agility Global Integrated Logistics. “This enabled us to understand the needs and deliver a solution that is innovative, reliable and easily implementable. The result is lowering of costs, but also improved quality in the supply chain.”