Siemens Canada appoints Progistix-Solutions to manage transportation services

by Canadian Shipper

Progistix-Solutions Inc. (Progistix), a member of the Canada Post Group of Companies, has announced a new, strategic supply chain outsourcing partnership with Siemens Canada Limited.

The agreement will create a real-time order to receipt operations network for over 100,000 shipments annually.

"The benefits extend beyond simple savings in transportation costs. Helping Siemens improve the efficiency in its transportation network will accelerate the movement of inventory in the channel and shorten the order and cash cycle, two measures with significant bottom line benefits." said Richard Tremblay, VP Transportation Management at Progistix.

Siemens expects that as a result of this partnership they will be able to reduce process costs through transparency and improve visibility of their inventory in transit and provide better customer service while improving their operational data.

"With complex, nationwide operations, managing the flow of goods to our customers’ facilities is a critical element of our business," commented Siemens’ VP Finance and Controlling, Elizabeth Didonato. "With dozens of carriers servicing locations across Canada, and over 100,000 shipments annually, managing our transportation network is both complex and difficult. Progistix has integrated its knowledge of complex logistics, significant process skills and SAP expertise to create an outsourced solution, delivering "fast time-to-market", operations benefits and excellent asset utilization for Siemens."

Progistix will implement a transportation management program, which offers significant operational and financial benefits and is tailored to the specific needs of Siemens. Components of this outsourced solution include: carrier selection, load planning and optimization, real-time visibility of all shipments in transit, ongoing compliance monitoring of carrier performance, rigorous freight invoice audit and payment and exact synchronization between profit centre allocations and actual freight expenses. This will integrate Siemens and Progistix’s SAP backbones, Progistix’s G-Log transportation management software, and transportation information from multiple carrier networks.

Progistix-Solutions Inc., a member of the Canada Post Group of Companies, is Canada’s largest Canadian owned, third-party logistics services company.

Siemens is the second largest electrical engineering and electronics company in the world, employing over 426,000 people in over 190 countries. Worldwide sales for fiscal 2002 were 84 billion euros. In Canada, Siemens is headquartered in Mississauga, Ontario and has 70 offices and 9 manufacturing facilities across the country.

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