DaimlerChrysler and Union Pacific form a company to track vehicle shipments

Insight Network Logistics, a new company created by DaimlerChrysler Corporation and Union Pacific will use the Internet to track vehicle shipments from assembly plants to dealers in order to substantially reduce the vehicle delivery time of factory-built Chrysler Group products in North America, reports eyefortransport.com.

Insight Network Logistics will be dedicated to increasing network efficiency and reducing logistics costs across the Chrysler Group’s North America supply chain, in addition to reducing the order-to-delivery time of Chrysler Group products to consumers.

“Insight will be dedicated to developing collaborative logistics’ solutions for the Chrysler Group that will result in consistent, predictable delivery of our products to our customers. We are targeting a 25% reduction in vehicle delivery time within 12 months,” said Dave Hodgson, Vice President of Worldwide Supply, Chrysler Group.

The company will be a wholly-owned subsidiary of Union Pacific Corporation, parent company of Union Pacific Railroad. The result will be a savings target for Chrysler of approximately $280 million over the next six years. Chrysler Group’s present vehicle delivery time averages 12 days from assembly plant to dealership.

Insight Network Logistics will be based in the Detroit, Michigan area and will be providing logistical services by early in the fourth quarter of this year. Operations will consist of a network control center that will employ 20 people and use Union Pacific’s “VinVision(R)” technology to track shipments of Chrysler Group vehicles via the Internet from assembly plant to dealers.

“We will move quickly to implement the technology, services, velocity and process improvements that the Chrysler Group expects. We understand Chrysler Group’s delivery network, business objectives, information systems and processes which will help us to drive immediate improvements in delivery times,” said Dick Davidson, UP Chairman and CEO.

Insight also will assign personnel to strategic vehicle distribution locations around the United States to focus on local process improvements, as well as coordination and integration among rail carriers, motor carriers and distribution facilities.

“In addition to cutting days out of our delivery cycle, we plan to make industry leading improvements in process control, transportation planning, information flow and shipment visibility across our entire distribution network,” Hodgson said.