European automaker Renault SA is broadening its use of a cloud supply chain platform to support the company’s expansion into international markets. Based on a successful live pilot covering the spare parts export supply chain from France to key markets such as Brazil, Saudi Arabia, and South Africa, Renault will now roll out its “Easy Tracker” project, enabled by GT Nexus, to all export markets around the world.
As part of the company’s “2016 - Drive the Change” corporate initiative, the after sales organization is focusing on the high value spare parts and accessory business. The company expects that the visibility and control available through the GT Nexus cloud supply chain platform will help Renault better serve its fast growing international markets and customers, while reducing inventory and transportation costs.
“The emerging markets are very competitive and Renault wants to guarantee spare parts and accessories availability at the best-in-class level, while reducing safety stocks, inventory, and expediting costs,” said Francesca Gamboni, after sales logistics vice president at Renault Group. “The ability to have real-time tracking of customer orders and shipments across our value chain is a key enabler.”
Renault’s spare parts supply chain is complex, covering 110 export destinations and 7,000 dealers across Latin America, Africa, the Middle East, Central Europe, and Asia. Renault uses a wide range of road, air, ocean and express parcel carriers to ship goods to remote markets. Product diversity is high with more than 200,000 SKUs sourced from 1,700 suppliers.
“Customer service is vital in competitive export markets. When cars are off the road because of missing parts, our dealers will do whatever it takes to get what they need for their customers,” added Gamboni. “The lack of visibility into orders and inventory in transit can add costs and create unnecessary customer service disruptions across our distribution networks. By providing accurate ETA status in the cloud, our importers and affiliates now have access to the information they need to operate smoothly.”
“Renault is a marquee global company that is using innovative cloud technology to meet corporate objectives,” said Andy Stinnes, EVP, products and strategy at GT Nexus. “By bringing supply chain partners, dealers and different Renault divisions together on a common information utility, they are poised to go to the next level with their supply chain.”
GT Nexus uses a “single version of truth” information model which helps Renault monitor real time its On-Time and In-Full (OTIF) delivery ratio, from the time products are ordered until they’re delivered overseas at the dealership. The Renault logistics team can also measure transportation services performance for reliability and variability.
The pilot was completed in the third quarter of 2012 and global rollout is currently in progress.