Cirrus Logistics is proud to have worked with Safelite® Group, the leading vehicle glass company in the U.S., on its project to overhaul its supply chain function increasing part availability, accuracy and quality; thereby lowering glass acquisition costs.
The project took place between 2008 and 2011, and saw the company restructure its distribution center and warehouse locations by reviewing glass and part acquisition costs, transportation costs and product need by location. Recognized under the Warehousing category, Safelite® named – CLASS warehouse modeling and simulation software from Cirrus Logistics – as part of the overall solution that led to the accolade.
After analyzing its customer satisfaction and supply chain costs, the company saw an opportunity to increase its market value, whilst also increasing customer service statistics. The data showed that closing Safelite AutoGlass’s single distribution center located within Safelite Glass Corp.’s manufacturing facility in Enfield, N.C., and replacing it with separate east coast and west coast DCs would remove one million miles from shipping and reduce transit time. Safelite AutoGlass opened its new west coast DC in California in 2009 then relocated its east coast DC near Atlanta in 2010.
The company used CLASS to map-out its new hubs and processes, as well as model the internal racking configuration of the vehicle glass and parts within the new DCs. Previously Safelite used a horizontal peg rack in its stores, which proved inefficient and costly. Safelite introduced a new vertical auto glass racking system that allowed shops to stock an increased volume of parts safely and efficiently.
“At Safelite, enhancing our supply chain is just another way we strive to create a superior customer experience,” said Dino Lanno, senior vice president of supply chain and manufacturing. “We thank our business partners who have worked with us to make it happen and we thank World Trade 100 and SMC3 for this recognition.”
As part of the project, Safelite has been able to make annual cost savings in excess of $9.2m, increase product inventory by 23% to reach 1.66 million parts at the end of 2011, up from 1.35 million in 2009. On top of which, the company received an all-time high Net Promoter Score (customer satisfaction rating method) of 87% and its highest annual sales of $1.1 billion.
“We are delighted to have been able to take part in this project and be part of the team that won such a prestigious award,” commented Simon Shore, managing director at Cirrus Logistics. “We’re seeing an increase in the number of organizations looking at warehouse modeling to make more informed decisions on how to improve their warehousing and distribution processes. CLASS quickly and easily enables operating scenarios to be tested in order to identify those areas where savings can be made. This can lead to huge cost savings and efficiencies as we have seen from the Safelite story.”
Partners that contributed to the overhaul and part of the award include: Cirrus Logistics (CLASS), BarloWorld (CAST), Robocom (WMS), William Frick & Company (Barcode labels) and Safelite® Glass Corp. (supplier).
Cirrus Logistics (www.cirruslogistics.com) is a highly innovative leader in the application of simulation techniques and has acquired an enviable record of applying advanced simulation and optimization methods to providing decision support tools across a broad spectrum of applications and industry types, including the logistics, oil, retail, food, pharmaceutical, chemical and air sectors. Drawing on this rich pool of experience and the skill and motivation of the team, Cirrus Logistics continues to set the standard in the application of simulation and optimization technology.
Part of the CentriQ Group.
Safelite® Group (www.Safelite.com) is a multi-faceted vehicle glass and claims management service organization based in Columbus, Ohio. The company, which has been in business since 1947, is comprised of four major business operations that include Safelite AutoGlass®, a vehicle glass repair and replacement services provider; Safelite® Solutions and Alliance Claims Solutions®, which offer fleet and insurance claims management services; Service AutoGlass®, a wholesale and distribution operation; and Safelite® Glass Corp., a manufacturing and distribution business unit. The company employs more than 10,000 people throughout the United States.
SMC³’s (www.smc3.com) innovative products and solutions put transportation pricing to work, supporting collaboration between 5,000+ North American carrier, shipper and logistics service provider organizations. Every day, SMC³ meets customers’ needs for actionable pricing content and operational demands by providing flexible content delivery options and partnering with leading transportation software solution providers. SMC³’s extensive educational initiatives – from acclaimed bi-annual conferences to courses from The Academy – are designed to give audiences the knowledge they need to succeed in a competitive transportation environment.
World Trade 100 (www.worldtradewt100.com) is the vital source of news and information for U.S. senior executive manufacturers, wholesalers and retailers active in domestic and international trade. With cutting-edge coverage of every aspect of logistics and the integrated supply chain, World Trade 100 reflects the priorities and diverse interests of its senior level and management subscribers to help them navigate today’s rapidly changing and highly competitive global marketplace. Each month in print and online, World Trade 100 examines various sectors of global trade, including transportation, third party logistics, warehousing, trade finance, technology, sustainability, risk and compliance, and economic development, to assist our readers in making their businesses profitable.