Driven to Cut Costs

Nissan North America taps SynQuest, Penske for model logistics planning

Atlanta  July 31, 2002  SynQuest Inc. this week announced that Nissan North America has licensed SynQuest supply chain planning solutions to reduce total costs across its logistics network. Penske Logistics will provide logistics design services. Nissan will use the software and services to conduct new model logistics planning across its North American operations.

SynQuest and Penske formed a working relationship in February 2002 to offer integrated software and services for optimizing inbound logistics networks, and Nissan is the first new joint customer. The SynQuest solutions are designed to model inbound networks, which includes balancing trade offs for the lowest total cost across transportation, inventory, manufacturing, suppliers and returnable containers, while following lean manufacturing operating practices. Penske will provide on-site support to assist Nissan in using the SynQuest solutions to determine delivery routes and frequency for the lowest total delivered cost.

Mike Steck, director of supply chain management of Nissan North America said his company was looking forward to working with SynQuest and Penske. The feeling seemed to be mutual: "Nissan has earned the title of most efficient manufacturer in North America for eight consecutive years, and we are excited to be working with such a successful company," said Tim Harvey, president of SynQuest.

The SynQuest software will run on IBM hardware and servers. Per a separate agreement with Nissan, IBM will provide additional services via its outsourcing centers.