Global sourcing of production parts has become the new reality for Canada’s Auto Industry. Ontario based manufacturers are increasingly importing from Asia, Mexico and Southern US. Intense competition has forced Toyota, Ford, Honda, Chrysler and GM to turn to third party providers and transportation partners to squeeze out time and cost from their supply chains.
CN approached PiVAL International, a third party value added supply chain leader, to leverage its OEM handling expertise for a solution. PiVAL in partnership with CN, designed – built a state of the art Logistics Centre (LC) in support homeland assembly plants. The LC solution had to meet a fail-safe delivery of system of imported parts arriving into a plant JIT production while minimizing inventory levels. Parts arriving from Mexico and the US could not have more than 48 hours of production supply on PiVAL’s floor. The LC value adds became a multi-modal solution capable of combining the flexibility and speed of truck with the efficiencies of rail and marine containers.
Production parts metering involved the consolidation and sequencing of hourly shipments to multiple assembly plants. None of the above could be accomplished without the use of a powerful WMS and TMS to maintain inventory visibility and schedule JIT. A team of IT specialists worked closely on integration of multiple supplier systems to either host their system or utilize EDI connectivity with PiVAL’s system to guarantee a seamless supply chain.
The final mile of metering parts from afar to huge assembly plants cannot occur without the use of dedicated transportation. PiVAL’s Transportation group worked closely with its customers and their suppliers to monitor the supply chain regardless of the mode of transportation. The collaborative coordination of customer carriers and lead logistics providers (LLP) and PiVAL’s fleet of Owner Operators never miss a delivery of a transmission, engine or axle to the car assembly line.
“the Pival value added Logistics Centre generates thousands of truckloads per year of freight which CN would not enjoy on its rails without this partnership”. CN was instrumental in the development of the LC by selling its land to PiVAL. “The PiVAL team made the project a reality”.
– Kevin Doucet, AVP Automotive, CN
CN is major Class 1 railway serving North America and supporting creative value added players like PiVAL. Rail served LC’s not only benefit large production plants to remain competitive. They also play a vital role in offering Canadians a green transportation solution with lower carbon emissions and reduced congestion on our highways. PiVAL and CN took a drawing board concept to market to help multiple stakeholders win on their terms.