TNT Logistics collocates within Mitsubishi to manage production linefeed delivery

By: Bubbajunk.com

In an Australian first, TNT Logistics (Australia) Pty Ltd (TNTL) has designed and commissioned a Logistics Control Centre collocated with the Mitsubishi Motors Australia Limited (MMAL) Tonsley Park Manufacturing Plant.

Minister for Industry, Tourism and Resources, Hon. Ian Macfarlane today commemorated the groundbreaking partnership at the Mitsubishi plant in South Australia.

The Logistics Control Centre allows TNTL to track component orders of MMAL and manage the entire journey globally or locally with sequenced delivery right up to the production line.

The Logistics Control Centre will result in significant process and product quality benefits to MMAL and is a significant element in the manufacturer's strategy for the new Mitsubishi 380 to be the best quality car ever built in Australia.

Commercial realism is critical to sustaining Australias competitive advantage in manufacturing - therefore logistically integrated businesses are vital in creating value and increasing productivity across all Australian industry sectors, says TNTL Managing Director Australia & Asia, Mr Howard Critchley.

The principles of a logistically integrated business were realised when TNTL designed and commissioned a Logistics Control Centre collocated within MMAL in an Australian first, he said.

The collaboration of management and operational staff including key unions contributed to the implementation of a global best practice model with local skills sets. This allows TNTL staff to operate and contribute towards strong productivity gains within the MMAL manufacturing facility.

Breaking these boundaries and delivering a specific logistical solution on the clients site is a first in the Australian automotive industry, and is set to revolutionise this sector with increased productivity across the board.

The strength of this partnership and innovative solution is an example of forward thinking and commercial acumen combined with flexible workplace relations, all essential factors to sustaining Australias economic performance in an increasingly globalised economy.

Logistics management is a key element of manufacturing but Australian businesses need to concentrate more on core manufacturing competencies and assign logistics management to third party experts, said Mr Critchley.

MMAL President & CEO, Mr Tom Phillips, agrees and believes the companys decision to engage TNTL as a partner to manage their material logistics is an important element of MMAL's overall manufacturing strategy for Mitsubishi's new large car, the 380.

This strategy sees MMAL once again introducing new technology and implementing world's best practices at Tonsley Park to ensure we deliver the best quality car ever built in Australia, said Tom Phillips.

The Logistics Control Centre will facilitate the delivery of all supplier parts for the manufacture of the Mitsubishi 380. It is capable of servicing product demand when the Mitsubishi 380 hits volume production with commitment to zero shortages.

The technology used by TNTL will provide instant visibility at production level of downstream supply issues, enabling contingency planning and optimising the management of resources, added Mr Philips.

Working as real partners with committed mutual business outcomes was the underlying success for the collocated Logistics Control Centre within Mitsubishis Adelaide production facility, said Mr Critchley.

The review and reengineering of MMAL logistics network required collaboration of all parties including the unions AMWU and TWU among others.

Upfront communication of the benefits of the partnership, the need to change and adopt new practices was critical to seeking the support of all parties, particularly the unions, he said.

The Logistics Control Centre forms a three-stage project won by TNTL in 2003. Stage one was a Transport Solution delivered in January 2004 and stage two was the Part & Accessories Operations project delivered in October 2004.