Cirrus Logistics Helps Safelite AutoGlass® Win the Alliance Award for Excellence in Supply Chain Performance
April 16, 2013
Cirrus Logistics is proud to have worked with Safelite® Group to help win the Alliance Award for Excellence in Supply Chain Performance. Safelite® Group the leading vehicle glass company in the U.S., on its project to overhaul its supply chain function increasing part availability, accuracy and quality; thereby lowering glass acquisition costs. The project took place between 2008 and 2011, and saw the company restructure its distribution center and warehouse locations by reviewing glass and part acquisition costs, transportation costs and product need by location. Recognized under the Warehousing category, Safelite® named – CLASS warehouse modeling and simulation software from Cirrus Logistics – as part of the overall solution that led to the accolade.
After analysing its customer satisfaction and supply chain costs, the company saw an opportunity to increase its market value, whilst also increasing customer service statistics. The data showed that closing Safelite AutoGlass’s single distribution center located within Safelite Glass Corp.’s manufacturing facility in Enfield, N.C., and replacing it with separate east coast and west coast DCs would remove one million miles from shipping and reduce transit time.
Safelite AutoGlass opened its new west coast DC in California in 2009 then relocated its east coast DC near Atlanta in 2010. The company used CLASS to map-out its new hubs and processes, as well as model the internal racking configuration of the vehicle glass and parts within the new DCs. Previously Safelite used a horizontal peg rack in its stores, which proved inefficient and costly. Safelite introduced a new vertical auto glass racking system that allowed shops to stock an increased volume of parts safely and efficiently.
“At Safelite, enhancing our supply chain is just another way we strive to create a superior customer experience,” said Dino Lanno, senior vice president of supply chain and manufacturing. “We thank our business partners who have worked with us to make it happen and we thank World Trade 100 and SMC3 for this recognition.”
As part of the project, Safelite has been able to make annual cost savings in excess of $9.2m, increase product inventory by 23% to reach 1.66 million parts at the end of 2011, up from 1.35 million in 2009. On top of which, the company received an all-time high Net Promoter Score (customer satisfaction rating method) of 87% and its highest annual sales of $1.1 billion.“
We are delighted to have been able to take part in this project and be part of the team that won such a prestigious award,” commented Simon Shore, managing director at Cirrus Logistics. “We’re seeing an increase in the number of organizations looking at warehouse modeling to make more informed decisions on how to improve their warehousing and distribution processes. CLASS quickly and easily enables operating scenarios to be tested in order to identify those areas where savings can be made. This can lead to huge cost savings and efficiencies as we have seen from the Safelite story.”
Partners that contributed to the overhaul and part of the award include: Cirrus Logistics (CLASS), BarloWorld (CAST), Robocom (WMS), William Frick & Company (Barcode labels) and Safelite® Glass Corp. (supplier).