Streamlining Transportation Network: Faurecia's Success with Convoy's Automotive Practice Group
Technology Category
- Functional Applications - Transportation Management Systems (TMS)
Applicable Industries
- Automotive
- Transportation
Applicable Functions
- Facility Management
- Logistics & Transportation
Use Cases
- Autonomous Transport Systems
- Public Transportation Management
About The Customer
Faurecia is a French tier-one auto parts supplier that was looking to simplify its North American transportation network, reduce cost, and improve service. As part of its strategy, the company whittled down its North American routing guide to a group of 30 core transportation providers. It awarded Convoy freight out of its Blue Springs plant (Kansas City, Missouri) and its Spring Hill plant (Nashville, Tennessee). Faurecia needed a solution that could handle the specific requirements of its commodities and provide reliable, on-time delivery of its high-value automotive freight.
The Challenge
Faurecia, a French tier-one auto parts supplier, was grappling with the complexity of its North American transportation network. The company was seeking to simplify its network, reduce costs, and improve service. The challenge was to find reliable carriers who could deliver their high-value automotive freight on time. The truckload carriers that run automotive freight tend to specialize in it and offer dedicated capacity solutions that can become embedded on very regular, repetitive lanes. This made it difficult for non-asset transportation providers to break into those verticals. Furthermore, the specific requirements of the commodities might make them unsuited for digital freight brokerage.
The Solution
Faurecia turned to Convoy’s automotive practice group to address its transportation challenges. Convoy, the only digital freight network with a dedicated automotive practice group, offered a unique solution. The group, led by Conner Olson, includes operations people solely focused on the auto industry and business development representatives with decades of experience working with auto parts suppliers. Convoy matched capacity for both truckload and so-called milk runs, where Convoy’s carrier would make pickups at multiple facilities before delivering to an original equipment manufacturer’s (OEM’s) assembly line. Convoy’s ability to use its batching technology to offer round trips to carriers made the return of racks and custom packaging to parts suppliers much more efficient. Additionally, Convoy QuickPay’s generous payment terms helped small trucking companies with their cash flow and drove carrier stickiness on complex but regular automotive lanes where familiarity matters.
Operational Impact
Quantitative Benefit
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