venture - Wallenius Wilhelmsen Logistics

CNH MADE LOGISTICS A COMPETITIVE ADVANTAGE
WHY IMPROVED LOGISTICS IS A
COMPETITIVE ADVANTAGE FOR CNH
1Regardless of whether the customer is
a dealer or an end user, the purchase
of a CNH product will seriously impact the
bottom line of their business. Thus, they
want to ensure the machines they’veordered
arrive on time and undamaged.
2Randy Baker notes logistics is often
the third largest cost for companies
like CNH and clearly it is an area where
“we need to actively lower costs”.
“Once, logistics was
viewed simply as an
expense, today it is a
true competitive
advantage!”
RANDY BAKER, SENIOR VICE PRESIDENT LOGISTICS AND SUPPLY CHAIN, CASE NEW HOLLAND
seasonal nature of the farming business,
for example.”
Delivering on that promise in today’s
global marketplace places immense
demands on the supply chain and logistics
operations of a company such as CNH,
which sells its Case and New Holland
brands through a network of 10,800 dealers
in 160 countries.
RANDY NOTES LOGISTICS is often the third
largest cost for many companies and
clearly it is an area where “we need to
actively lower costs”.
“This is relatively new thinking because
people didn’t watch such costs so closely
before, but in today’s highly competitive
environment logistics expenditure goes to
the bottom line of the business,” he says.
And adds: “Once, logistics was viewed
simply as an expense, today it is a true
competitive advantage!”
EARLY IN 2006, CNH signed a three-year
agreement with Wallenius Wilhelmsen
Logistics for global roll-on/roll-off
(RORO) shipments linking around 100
port connections on Europe-North America
and South America-Japan-Oceania
routes. Why was the deal struck?
“At the end of the day, it’s about delivering
on our promises to customers by providing
superior service in terms of
improved lead times and process controls,”
says Randy.
“Just like when someone waiting for a
CNH sells its vehicles through a network of
10,800 dealers in 160 countries.
new car, our customers are on the phone
asking where their ordered equipment is
at any particular time and whether it’s
going to be delivered on schedule, and in
perfect shape. For us, the smart choice is
to leverage the expertise of a global logistics
company such as Wallenius Wilhelmsen
Logistics, with whom we’ve worked
since the 1970s, who has intimate knowledge
of ocean shipments, port operations
and distribution management.”
3At the end of the day, good or bad
logistics impact on the customer's
overall perception of CNH. “It’s about delivering
on our promises to customers by
providing superior service in terms of
improved lead times and process controls,”
says Randy.
THE SOLUTION
A SMOOTHER
SUPPLY CHAIN
Wallenius Wilhelmsen Logistics and CNH
have been co-operating since the 1970s.
What began as a pure ocean transportation
agreement has expanded into a solution
involving more and more of CNH’s supply
chain and Wallenius Wilhelmsen Logistics
utilising four of its five main products.
■ OCEAN TRANSPORTATION
In March 2006, CNH and Wallenius
Wilhelmsen Logistics signed a three-year
agreement with Wallenius Wilhelmsen
Logistics for global roll-on/roll-off
(RORO) shipments. Services provided to
CNH will link Europe-North America and
South America-Japan-Oceania, including
nearly 100 port connections.
■ TERMINAL SERVICES
In North America, the Mid-Atlantic Terminal
in Baltimore plays a key role for both
inbound and outbound CNH cargo shipments.
Together with Wallenius Wilhelmsen
Logistics, the terminal has invested in
a new operating system that identifies all
cargo through radio frequency tags.
“From a RORO perspective, it’s a unique
system providing CNH and other
customers much better visibility of where
their cargo is in the supply chain”, says
Flavio Batista, account manager for
CNH’s US operations.
■ TECHNICAL SERVICES
When it comes to the port in Baltimore,
Wallenius Wilhelmsen Logistics offers
CNH a storage facility where 200 vehicles
can be stored before inland distribution to
dealers in the USA takes place.
■ SUPPLY CHAIN MANAGEMENT
Wallenius Wilhelmsen Logistics handles
inbound supply chain management for
CNH at 12 ports in the USA. Providing
total visibility from factory to dealer, this
assures CNH units smooth-working
transport from the incoming vessel
through to the dealer. The services include
an electronic tendering process that assigns
the right trucking company for inland
distribution in each specific case.
CONTACTS AT WALLENIUS
WILHELMSEN LOGISTICS
Flavio Batista, Account Manager
for CNH in America.
Phone: +1 201 638 0458
flavio.batista@2wglobal.com
Loic Minvielle, Corporate
Account Manager, Global.
Phone: +33 153 300 499
loic.minvielle@2wglobal.com