Orderlink's Take: How E2open Transformed Volvo's Operations

Orderlink's Take: How E2open Transformed Volvo's Operations

 

About e2open:

E2open is a leading connected supply chain software platform, facilitating transformation in the way large companies manage the creation, movement, and sale of goods and services. With a global, cloud-native platform designed for modern supply chains, e2open connects over 400,000 partners across manufacturing, logistics, channels, and distribution. The platform tracks over 12 billion transactions annually and enables companies to enhance efficiency, reduce waste, and operate sustainably.

 

For more information, visit e2open's website (make as a hyperlink).

 

E2open's Swift Delivery Transforms Volvo's Operations

Volvo Cars, a globally respected automotive brand, faced the challenge of improving visibility and efficiency in its global operations. Operating in over 100 countries with a network of 2,300 dealerships, Volvo needed a solution to quickly streamline the planning, optimization, and tracking of finished vehicle shipments from its production plants in Sweden, Belgium, China, and its new U.S. factory with integrated rail capabilities.

 

Recognizing the need for speed and efficiency, Volvo initiated an extensive Request for Proposal (RFP) process to identify a Transportation Management System (TMS) partner. They sought a solution that could be swiftly implemented, integrating with 26 existing IT systems, handling 35,000 routes to market, processing 120 new EDI messages, and collaborating with 30 existing carriers.

 

After a rigorous evaluation, Volvo chose e2open, a cloud-based TMS renowned for its rapid deployment capabilities. E2open's cloud-based architecture facilitated a swift implementation, allowing Volvo to have the new TMS up and running within just five months without any supply chain disruptions. This stood in stark contrast to the traditional systems that would typically require extensive discussions and architectural planning.

 

Following the lightning-fast deployment, Volvo witnessed a transformation in their operations, resulting in a remarkable cost savings that were five times greater than anticipated. The enhanced visibility, streamlined processes, and cost savings all underscored the efficiency of the e2open solution. Additionally, dealerships reported just a fraction of the issues compared to when Volvo was using a logistics service provider, showcasing the tangible impact of e2open on Volvo's performance and service quality. This journey reaffirmed the value of choosing the right partner for Volvo's evolving logistics and distribution needs.

 

Orderlink’s take:

The speed of implementing software solutions is a crucial factor for companies seeking operational improvements. This rapid implementation is often achievable through third-party Software as a Service (SAAS) solutions. When companies opt for ERP add-ons or extensions, the implementation process tends to be considerably longer, and the results generally don’t meet the desired standard.

 

For rapidly growing companies, the ability to adapt swiftly and make continuous improvements is paramount. Legacy ERP systems typically fall short in providing this level of agility. In the context of our company's focus on working with SMEs and FMCG companies, even a five-month implementation timeline, as seen in the e2open case, may seem relatively long.

 

This perspective arises from our experience in working with smaller and more nimble enterprises where the need for extensive integrations is minimized. In such cases, implementation can often be completed within a matter of days or weeks. The lesson here is that the choice of software and its implementation approach should align with the unique requirements and pace of each company's growth journey.

 

E2open Transformed Volvo's Operations" available on their website at https://www.e2open.com/resources/e2open-volvo-case-study/