LG Electronics Optimizes Its European Logistics With JDA Transportation Solutions
Company Size
1,000+
Region
- Europe
Product
- JDA® Transportation Manager
- JDA® Transportation Modeler
- JDA® Transportation Planner
Tech Stack
- Transportation and logistics management software
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Customer Satisfaction
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
About The 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.
The 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.
The 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.
Operational Impact
Quantitative Benefit
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