The logistics processes for a global enterprise with manufacturing sites, dealerships and service centres around the world have an impact on the firm’s economic aspects and on the environment which cannot be overlooked.
For several years, Fiat Group has monitored the performance of its logistics in order to improve efficiency and to study and adopt more ecologically-sustainable transport solutions. World Class Logistics , in fact, is a module of the World Class Manufacturing programme and, therefore, an essential component in ensuring continuous improvement in both the production system and the supply chain. To increase the effectiveness of this process, the Supply Chain Management unit of Fiat Group Automobiles (FGA) has for the past two years used a specific unit called Logistics Engineering , which connects production with logistics. Through the re-engineering of material flows and application role of the “Just-in- Time” concept, its function is to optimise processes by eliminating stock and reducing shipping, delivering only what is needed to the point of use and only at the right time. This has led to the adoption of techniques such as “just-in-sequence” re-stocking, the expanded use of “pull” systems for ordering materials based on consumption, closer and more integrates suppliers, the use of different transport solutions and the gradual replacement of disposable packaging with reusable containers, etc.
Logistics Engineering also systematically analyses and monitors the best competition and the most effective internal practices to be communicated and shared within the Group, including through a dedicated intranet site. This way, pilot projects and solutions can be rapidly deployed to the Sectors. This Green Logistics approach ensures that the Group’s logistics system evolves in a sustainable manner. At Fiat, inbound transport of components and materials is either managed by the Group using external transport providers or directly by suppliers. Outbound transport of finished vehicles from plants is instead handled either by the Group subsidiary i-FAST Automobile Logistics S.r.l. or external transport providers. To reduce the environmental impact of logistics processes, the Group’s efforts are focused in four main areas:
- increase in low-emission transport
- use of intermodal solutions
- optimisation of transport capacity
- reduced use of packaging and protective materials