Blue Yonder Case Studies LG Electronics Optimizes Its European Logistics With JDA Transportation Solutions

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	LG Electronics Optimizes Its European Logistics With JDA Transportation Solutions Blue Yonder

LG Electronics Optimizes Its European Logistics With JDA Transportation Solutions

Blue Yonder

Technology Category	Functional Applications - Transportation Management Systems (TMS)
Applicable Industries	Electronics
Applicable Functions	Logistics & Transportation
Use Cases	Fleet Management Supply Chain Visibility
Services	System Integration Training
Challenge	LG Electronics, a global leader in technology innovation and market leadership, faced a significant challenge in its European logistics network due to exponential growth over the past decade. The company's logistics control was traditionally outsourced to various third-party logistics providers, resulting in limited visibility and control, and a reactive management style. This outsourcing also led to information bottlenecks and dependency on third parties for any innovation in transportation planning. LG Electronics Europe was also relying on an outsourced manual transportation planning system with fixed routing methodologies, which limited its ability to optimize loads, carriers, and overall capacity. As a result, LG was not able to control all costs efficiently. The company sought to consolidate and upgrade its European logistics operations by bringing control in-house, aiming to proactively measure performance and continuously improve in terms of both service and costs. Read More
About Customer	LG Electronics is a global leader in technology innovation and market leadership with a 50-year history. Over the past decade, the company’s European operations have experienced exponential growth, as demand has skyrocketed for its leading-edge flat panel televisions, mobile communications devices, and other products. This success has placed a strain on LG Electronics’ European logistics network. The company's logistics control was traditionally outsourced to various third-party logistics providers, resulting in limited visibility and control, and a reactive management style. LG Electronics Europe was also relying on an outsourced manual transportation planning system with fixed routing methodologies, which limited its ability to optimize loads, carriers, and overall capacity. Read More
Solution	LG Electronics Europe chose transportation and logistics management capabilities from JDA Software’s Intelligent Fulfillment™ solution to internalize its logistics management. The company began by implementing JDA Transportation Modeler to envision the ideal logistics system to consolidate orders, establish transportation hubs, and select carriers in a flexible manner, based on costs and service levels. After the model was created, LG implemented JDA Transportation Manager to set up the new network and begin managing transportation orders dynamically. Cross-company workflows connect LG to its transportation supplier network, increasing collaboration and providing LG with full visibility. For the first time, LG has been able to conduct freight audits to understand its enormous transportation spend at a very granular level of detail. Armed with real-time information and exception-based management capabilities, LG’s planners can work much more efficiently — and execute their transportation decisions with a much higher degree of confidence. Read More Log in to view content
Contents

Technology Category

Functional Applications - Transportation Management Systems (TMS)

Applicable Industries

Electronics

Applicable Functions

Logistics & Transportation

Use Cases

Fleet Management

Supply Chain Visibility

Services

System Integration

Training

Challenge

LG Electronics, a global leader in technology innovation and market leadership, faced a significant challenge in its European logistics network due to exponential growth over the past decade. The company's logistics control was traditionally outsourced to various third-party logistics providers, resulting in limited visibility and control, and a reactive management style. This outsourcing also led to information bottlenecks and dependency on third parties for any innovation in transportation planning. LG Electronics Europe was also relying on an outsourced manual transportation planning system with fixed routing methodologies, which limited its ability to optimize loads, carriers, and overall capacity. As a result, LG was not able to control all costs efficiently. The company sought to consolidate and upgrade its European logistics operations by bringing control in-house, aiming to proactively measure performance and continuously improve in terms of both service and costs.

About Customer

LG Electronics is a global leader in technology innovation and market leadership with a 50-year history. Over the past decade, the company’s European operations have experienced exponential growth, as demand has skyrocketed for its leading-edge flat panel televisions, mobile communications devices, and other products. This success has placed a strain on LG Electronics’ European logistics network. The company's logistics control was traditionally outsourced to various third-party logistics providers, resulting in limited visibility and control, and a reactive management style. LG Electronics Europe was also relying on an outsourced manual transportation planning system with fixed routing methodologies, which limited its ability to optimize loads, carriers, and overall capacity.

Solution

LG Electronics Europe chose transportation and logistics management capabilities from JDA Software’s Intelligent Fulfillment™ solution to internalize its logistics management. The company began by implementing JDA Transportation Modeler to envision the ideal logistics system to consolidate orders, establish transportation hubs, and select carriers in a flexible manner, based on costs and service levels. After the model was created, LG implemented JDA Transportation Manager to set up the new network and begin managing transportation orders dynamically. Cross-company workflows connect LG to its transportation supplier network, increasing collaboration and providing LG with full visibility. For the first time, LG has been able to conduct freight audits to understand its enormous transportation spend at a very granular level of detail. Armed with real-time information and exception-based management capabilities, LG’s planners can work much more efficiently — and execute their transportation decisions with a much higher degree of confidence.

Impact #1	Achieved significant savings on annual transportation spend
Impact #2	Significantly increased service levels and customer satisfaction
Impact #3	Increased consolidation ratios in all implementations by 10 percent

Impact #1

Achieved significant savings on annual transportation spend

Impact #2

Significantly increased service levels and customer satisfaction

Impact #3

Increased consolidation ratios in all implementations by 10 percent

Benefit #1	Significant savings on annual transportation spend
Benefit #2	10% increase in consolidation ratios in all implementations
Benefit #3	Huge profit as a result of the increased visibility into its transportation network

Benefit #1

Significant savings on annual transportation spend

Benefit #2

10% increase in consolidation ratios in all implementations

Benefit #3

Huge profit as a result of the increased visibility into its transportation network

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Overview

LG Electronics Optimizes Its European Logistics With JDA Transportation Solutions

Operational Impact

Quantitative Benefit