Network planning
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Success story
Toyota Logistics Services uses network optimization services from Inform
Toyota Logistics Services (TLS), the North American vehicle logistics provider for Toyota, has significantly enhanced its logistics network using INFORM’s network planning optimization solution. This initiative aims to achieve cost reductions, enhance sustainability, and improve network performance across TLS’s extensive operations.
Key Highlights
Challenges in Vehicle Logistics
- TLS manages a vast network that includes production plants, ports, modification centers, and dealerships across North America.
- Faced with rising costs and complex logistics involving rail and truck carriers, TLS sought a solution to optimize its logistics network and improve service quality.
Implementation of INFORM’s Optimization Solution
- INFORM’s network planning solution facilitates strategic, holistic planning of outbound logistics, optimizing routes and modes of transportation.
- The system handles data from various logistics service providers and partners, ensuring that TLS can strategically analyze and optimize its network multiple times per year.
Multiple Scenarios for Comprehensive Analysis
- TLS used INFORM’s solution to create multiple scenarios, each focusing on different aspects such as cost optimization, service levels, and operational constraints.
- This approach allowed TLS to evaluate its network thoroughly, identify optimal routes and partners, and make informed decisions.
Significant Cost Savings and Performance Improvements
- Since the initial implementation in 2015, TLS has achieved a 3% annual cost reduction, effectively counteracting rising logistics costs.
- The optimization solution has helped TLS balance the use of rail versus truck carriers, minimize congestion, and reduce CO2 emissions, aligning with Toyota’s sustainability goals.
Future-Ready Strategy
- TLS plans to conduct the optimization process every five years, continually refining its logistics network to adapt to changing market conditions.
- INFORM’s solution also supports TLS in achieving greater transparency and reliability in its logistics operations, ensuring long-term operational excellence.
Benefits
- Cost Reduction:
Achieved a 3% annual reduction in logistics costs, enabling better cost management. - Enhanced Sustainability:
Optimized network planning contributes to lower CO2 emissions by balancing rail and truck use.
- Improved Decision-Making:
Transparent data and scenario analysis support optimal route and partner selection. - Increased Competitiveness:
Effective cost and performance management enhance TLS’s ability to meet service quality standards.
Conclusion
Toyota Logistics Services’ collaboration with INFORM has transformed its vehicle logistics network, achieving significant cost savings, improved sustainability, and enhanced service quality. By leveraging advanced optimization solutions, TLS continues to lead in operational excellence and environmental stewardship in the automotive logistics industry.
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Lill Haase
Product Marketing Manager
Lill Haase has been part of INFORM since 2023. She has been focusing on Vehicle Logistics ever since – turning complex topics into clear, accessible messages. In her work, she puts strong emphasis on customer relevance, clarity, and trust.
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