Based in Hausach, Germany, The Neumayer Tekfor Group is a market leader in defining, developing, and producing innovative solutions for the automotive industry. The 2700 person global workforce produces revenues of over €540 million in transmissions, engines, and other automotive applications. The major focus of Neumayer Tekfor is the development of new processes and products; and the company manufactures on every continent.
This diversity in location has led to difficulties in obtaining visibility to supply chain data. With each location responsible for its own freight payment function, it was almost impossible to identify opportunities for reducing supply chain costs through more efficient transportation provider selection and shipment routing. In addition there was no guarantee that the rates and charges being levied were correct in all cases.
To correct these problems, Neumayer Tekfor turned to nVision Global Technology Solutions of McDonough, Georgia for invoice audit and payment of its international freight charges.
Using the nVision Logistics Management Portal, the company was able to develop one international database; and by having accurate access to detailed freight spend data, was able to reduce transportation expenditures by 25 percent. This savings was achieved by using the data for such things as the optimization of lanes through the consolidation of shipments to the same region into “milk runs.”
In addition, the data enabled Neumayer Tekfor to develop dashboards by which to measure key performance indicators such as the monitoring of billing errors, identifying missing pricing for lanes and specific movements, visualization of global transportation lanes, categorization of costs including VAT, freight cost by plant, and selection of transportation modes.
The nVision Resolution web portal is used to manage invoices that may need approval at one of their three plants. This process helps ensure that invoices are reviewed and approved in a timely manner to prevent potential disruptions to their supply chain operations when transportation providers sometimes hold freight until payment is made. The visibility and transparency provided by the nVision tools have been very effective in managing this process and mitigating potential issues.
Neumayer Tekfor also realized hard dollar savings and cost avoidances through the nVision process. Through an effective audit process that identified incorrect rates with transportation providers and duplicate billings of invoices, Neumayer Tekfor realized a positive return on investment of 4.8 € to 1.00 €.
Facts and Figures
Total savings and cost avoidances: 175.500,49 €
Net savings: 138.661,13 €
Savings percent of total freight spend: 8.3%
In essence the services provided by nVision are paid for and unnecessary costs are avoided, which can also eliminate the costly claims process when errors are discovered after invoices are paid.
According to Alexander Hug, Neumayer Tekfor’s Manager Project & Advanced Sourcing, “Using nVision allowed Neumayer Tekfor to consolidate transportation spend data that was being processed and stored locally in a decentralized environment. Transportation providers had recently approached us about increasing rates; and having access to the detailed data from all three plants allowed us to greatly enhance the procurement process and negotiate more favorable contracts, reducing spend by 25%. This was made possible by providing shipment lane and tonnage information to all our transportation providers for all our combined volume.”
nVision Global Technology Solutions is a leading freight bill, invoice audit/payment management services company, offering enterprise wide supply chain solutions. As a global business partner, nVision not only provides a prompt, accurate freight payment solution but industry – leading information management services that help clients maximize efficiencies in their supply chain.