Freight Consolidation for a European Automotive Manufacturer

Supply Chain & Logistics
2019
Foundry & AIP
Data & AI Strategy
At a glance
€50M

identified annual freight cost savings through consolidation.

200+

suppliers analysed across multiple plants and delivery routes.

5

manufacturing plants unified into a single freight optimization framework.

Industries & Expertise

Data Fragmentation at Manufacturing Scale

We partnered with a major automotive manufacturer, which operates a complex multi-plant manufacturing network across Europe. The logistics planning team lacked the analytical infrastructure to systematically exploit optimization opportunities. The historical delivery data was fragmented and cost structures varied, presenting the challenge of how savings opportunities could be quantified, validated, and operationalized at the speed required for procurement decisions. A hidden layer of complexity was uncovered as accurate freight cost modeling required precise weight and volume calculations for each purchase schedule line, which in turn required detailed knowledge of load carrier specifications. A small part delivered on a heavy-duty pallet has radically different transport economics than the same part in a lightweight returnable container. This required building a material-centric ontology that unified purchase schedules, demand forecasts, stock positions, and physical packaging specifications into a coherent analytical framework.

Our Solution

A Transport Optimization Platform

Working with Sibyl as implementation partner, the freight and logistics planning team built a comprehensive transport optimization platform that consolidated years of historical delivery data across five manufacturing plants and over thousands of suppliers. The freight optimization capability was developed as part of a broader supply chain digitalization initiative The platform centered on a comprehensive ontology that treated freight optimization not as an isolated analytical problem but as an integrated capability spanning procurement, logistics, and inventory management. The team developed an algorithm that identified the highest-impact consolidation opportunities at the supplier level.

Impact

€50 million in annual optimization opportunities extracted

through systematic delivery consolidation and supplier schedule reshuffling.

Transformation of freight optimization

from an occasional analytical exercise into a routine component of procurement planning.

Creation of actionable analytical recommendations

with freight planners able to encode supplier-specific knowledge.

Summary

The client was faced with a challenge that is characteristic in large-scale manufacturing: the inability to systematically exploit optimization opportunities due to lack of analytical infrastructure. The team implemented comprehensive data integration, sophisticated but pragmatic algorithms, and operational interfaces that transform analytical capabilities into routine decision-making tools. Sibyl’s solution shows how freight optimization can be approached not as a one-time analytical exercise, but as a permanent operational capability integrated into procurement planning and supplier management workflows.