Case New Holland drives for the Oracle
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In a drive to reduce logistics costs, increase supply chain visibility and move further to on-demand manufacturing, agricultural and construction equipment giant CNH Global has gone for an Oracle Transportation Management system.
Every year CNH, which is a majority-owned subsidiary of Fiat, ships more 300,000 items of equipment globally and handles one million inbound shipments to support 38 production plants – all of which to date has been outsourced.
Logistics is now being brought back in-house under Oracle – a move that the company says will enable it to realise significant cost savings. And it’s making that work in part by also going for Oracle’s On Demand software-as-a-service model, meaning zero IT management for its in-house IT staff.
“We needed a proven system that would not only support our high volume business, but help us get control of our substantial transportation costs,” says CNH senior vice president, Global Logistics and Supply Chain, Randy Baker.
“Reliability was also critical to our decision. If our logistics operations aren’t working, we don’t have the parts for manufacturing or the ability to ensure our tractors, combines and excavators reach our customers on time.”
He expects Oracle Transportation Management to provide end-to-end, item level real-time visibility into its constantly changing logistics data globally. And the result: better planning for manufacturing cycles as well as an opportunity to give its customers more order tracking.
Says CNH CIO Kevin Glynn: “A farmer who buys a tractor will be able to know exactly when the machine left the factory and when it’s going to arrive on the farm. This capability will make us more competitive.”
Baker also says CNH will also be equipped to act on unexpected supply chain events, like shipment delays or short-shipped quantities, providing further efficiencies and cost savings.
Glynn is confident that CNH will be able to integrate Oracle into its back-end legacy systems to create a virtually seamless automated environment with scaleability for future growth.
Oracle Consulting will oversee the implementation for CNH. The initial deployment is underway and CNH plans to have all of its manufacturing plants in North America live on Oracle Transportation Management by early next year.