Since mid-2013, 80 percent of Scania’s inbound transport flow across Europe and Latin America is organised through NILE (New Inbound Logistics), an approach to increase the logistics efficiencies.
The initiative reflects overall goals to optimise transport by balancing four considerations – finding the right equipment, the right carrier, the right modality and the right routing. Strategically placed hubs help consolidate volume and increase the filling rate of each truck.
Environment savvy, cost efficient
Through this mindset Scania has demonstrated greater asset utilisation and reduced stock levels, greater alignment to production and less volatility in deliveries. Most importantly, it has also resulted in a 17 percent reduction in carbon dioxide emissions since the approach was adopted. With a 27 percent relative improvement in the fill rate compared to year-end 2012, NILE demonstrates that cost and environmental efficiencies go hand in hand.
NILE is built on the principle of taking larger responsibility as a transport buyer and engaging on a more granular level in designing logistics flows and transport routes, in close partnership with transport suppliers. The approach is underpinned by guiding principles of the Scania Production System – standardisation, normalising our way of working and continuous improvement.
Spreading the word
With Scania’s focus on eliminating waste, shared goals and an articulated process, NILE helps formulate expectations on results, interlinking every phase of the flow from fill rates, loading and unloading, transport mode and the receiving process.