Shippeo > Case Studies > Increasing Supply Chain Resilience in the Automotive Industry: A Case Study of Faurecia

Increasing Supply Chain Resilience in the Automotive Industry: A Case Study of Faurecia

Technology Category

Analytics & Modeling - Machine Learning
Analytics & Modeling - Real Time Analytics

Applicable Industries

Automotive
Transportation

Applicable Functions

Logistics & Transportation

Use Cases

Autonomous Transport Systems
Supply Chain Visibility

Services

System Integration

About The Customer

Faurecia Seating is a globally recognized leader in the automotive industry, specializing in the design and assembly of automotive seating components. The company produces a wide range of seat products, including seat covers, foams, accessories, seat electronics, and advanced mechatronic systems. These components are used by many of the world’s largest car brands, including BMW, Porsche, and Mercedes. As the number one manufacturer of seat structures and mechanisms for cars globally, Faurecia operates across 74 production sites in 23 countries. The company's customers demand reliable and consistent deliveries of seat parts to sustain their JIT manufacturing processes, making the efficiency and reliability of Faurecia's supply chain operations critical to its success.

The Challenge

Faurecia Seating, the global leader in automotive seating components and complete seat design and assembly, faced significant challenges in managing its highly complex supply chain. The company, which operates across 74 production sites in 23 countries, was grappling with unexpected carrier costs due to waiting times or extra distances travelled by carriers. Additionally, the disruption in the supply of components led to costly production line halts. The company also incurred high penalties for unanticipated late deliveries. These challenges not only affected the company's profitability but also its customer satisfaction levels, as its customers demanded reliable and consistent deliveries of seat parts to sustain their Just-In-Time (JIT) manufacturing processes.

The Solution

To overcome these challenges, Faurecia partnered with Shippeo to operate the first real-time tracking system for land transportation in the automotive industry. The solution, based on a 140,000+ carrier network, leverages innovative machine learning for Estimated Time of Arrival (ETA) calculation, specifically designed for road transport and its unique constraints. The system was successfully deployed to all European plants from Faurecia’s supply chain operations department in Poland. Shippeo directly integrates with all 180 carriers using more than 40 tailored API connections, tracking 17,000 TOs per month. The platform is accessed approximately 1000 times per week by over 40 users across the chain. The real-time communications sent automatically allow Faurecia’s customer teams to take proactive measures swiftly and reduce any transportation risks.

Operational Impact

The implementation of the real-time tracking system has not only optimized costs for Faurecia but also improved customer satisfaction by better managing each party’s expectations. The system's real-time communications, sent automatically, allow Faurecia’s customer teams to take proactive measures swiftly, thereby reducing transportation risks. The platform has also created value for Faurecia's partners and customers, both internal and external, by improving overall efficiencies across the supply chain. By tracking dwell times and anticipating delays, Faurecia can better avoid penalties and line stops, further enhancing its operational efficiency.

Quantitative Benefit