Limited logistics program integrations meant BorgWarner faced high costs and frequent expedited shipments due to supplier delays and just-in-time inventory needs.
C.H. Robinson provided a comprehensive, expedited-driven logistics solution offering transparent spend reporting, reliable carriers, and flexible options tailored to BorgWarner's needs.
BorgWarner achieved cost savings, improved reliability, greater visibility, and gained control over their logistics operations, enhancing overall supply chain efficiency.
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.
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.
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:
“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.
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.”