Expedited Solutions Bring Greater Control to the BorgWarner Inc., Automotive Supply Chain

Using the world’s foremost technologies, BorgWarner Inc., is a leading global Tier 1 automotive manufacturer specializing in the design of products that define the way the world moves forward. From electric vehicle (EV) batteries and transmissions to thermal components, power systems, and more, original equipment manufacturers and automotive suppliers use BorgWarner products globally.

Supply chain setbacks: Lack of visibility and support hinder ability to procure expedited capacity

Automotive supply chains are among the most demanding in the world. The just-in-time (JIT) manufacturing process, combined with the global nature of automotive supply chains means the precise coordination of suppliers, manufacturers, and distributors isn’t just advantageous—it’s a requirement.

Like other automotive manufacturers, the components manufactured by BorgWarner must be delivered exactly when needed to minimize inventory costs, keep production lines moving, and maintain deadlines. There is little room for error.

Based in Auburn Hills, MI, a strategic automotive hub in the Detroit Metro area, BorgWarner has 82 locations worldwide, including 14 locations in the United States and 8 in Mexico. While this broad footprint helps meet the shifting demands of their customers, it adds another layer of complexity to their integrated supply chain.

Because BorgWarner struggled to gain sufficient visibility to each location’s activity across modes, they set out to find a new provider that could help. The company wanted one provider that could provide both fourth party logistics (4PL) services at the global level as well as act as a third party logistics provider (3PL) to help manage the day-to-day work—especially around the clock expedited procurement.

Achieving clarity through tailored logistics solutions

C.H. Robinson began by understanding and addressing specific issues at each individual plant location. With this background information, it was clear where, when, and why expedited shipments were needed.

Tailoring a solution for each plant’s requirements often involved analyzing other modes that could achieve the same results. Then comparing the cost and efficiency of each mode against the existing expedited strategy.

The solution from C.H. Robinson requires each plant to enter their shipment requests into Navisphere®, then C.H. Robinson provides a minimum of three transportation options for every shipment. Each option meets the specific needs and expectations for that shipment as well as follows automotive industry best practices. Every quote includes:

• Pricing details: C.H. Robinson provides the all-in cost for each option. BorgWarner uses the information to make an informed decision, balancing cost and speed, based on their needs.
• Carrier information: Knowing the C.H. Robinson team vets the carriers, choosing those that understand the urgency of just-in-time auto parts, helps build trust.
• Vehicle type: Details help pair the appropriate vehicle with each load, optimizing efficiency and safety.
• Timing options: Precise delivery windows and transit times mean BorgWarner can better maintain their just-in-time production schedules, reducing the risk of delays.

“C.H. Robinson is always thinking outside the box. If there isn’t a simple solution, then they will create one,” explained Cindy Boelstler, enterprise commodity manager, BorgWarner.

Today, BorgWarner trusts C.H. Robinson to manage the transportation for over half of their business. TMC, a division of C.H. Robinson, is BorgWarner’s 4PL provider, providing hourly tracking updates, streamlining communications, and boosting visibility.

Strategic success for BorgWarner

Through their collaboration with C.H. Robinson, BorgWarner has streamlined their expedited shipping operations across the decentralized organization. Today, the manufacturing leader works with C.H. Robinson to move over 150 expedited shipments each month. Since the relationship began, the company has successfully expedited 12,600 ground and air shipments with help from C.H. Robinson, both globally and domestically.

“C.H. Robinson has been very helpful and responsive in any requests,” shared Morgan Strode, senior area manager, BorgWarner Seneca, SC. “They have also been very helpful in regard to time studies and continuous improvement projects with reducing cost for transportation services.”

As the relationship with C.H. Robinson grows, so do the benefits BorgWarner experiences:

• Greater operational clarity
  BorgWarner now has clear visibility and greater understanding into their expedited shipping spend. The ability to see precise cost breakdowns has streamlined budgeting processes and improved financial forecasting, contributing to better overall financial health.
• Control over transportation budget
  With the three-option model, BorgWarner gains end-to-end visibility, making it possible to prioritize critical loads and ensure high-priority shipments are expedited while achieving cost savings on loads with more lead time.
• Strategic mode choices and cost savings
  By leveraging unmatched expertise and tailored solutions from C.H. Robinson, BorgWarner has reduced unnecessary expenses. Through flexible, multimodal capacity options from C.H. Robinson, BorgWarner’s expedite costs are on average 28% less than DAT truckload. Year-over-year savings have also been achieved at key plant locations through strategic modal choices.
• More data-driven decisions
  Because shipping data is captured and shared through technology, not only is it accurate, but it’s also actionable. For example, when expanding into manufacturing EV batteries for commercial vehicles, C.H. Robinson helped BorgWarner use their own shipping data to analyze trends, identify areas for improvement, and implement changes based on solid evidence. All this helps the automotive manufacturer with their key performance indictors and sustainability goals.