case study Terex
CML provides Terex Group with responsive and flexible supply chain solutions.
Terex Corporation is a global manufacturer of lifting and material processing products and services, that delivers lifecycle solutions to maximise customers return on investment.
CML has worked with Terex Pegson, part of the Terex Corporation who specialise in manufacturing crushing and screening equipment, for over three years with key personnel working with them for over 10 years.
To ensure that delays in Terex’s production line are avoided and service levels are maintained to prevent sale losses, and make sure that all parts are available to create a full plant/ machine, requires meticulous planning. With the mining industry experiencing a rapid growth at present, the sourcing of products from global partners has become more difficult with production often being unable to match demand.
When delays are experienced in the supply chain, the traditional solution is to revert from the cheaper and slower option of sea freight, to the more expensive and quicker means of air. This being said, the primary challenge for Terex is the nature of their commodity. A single part can weigh from ve kilos to 15,000 kilos and therefore can require specialist loading facilities at origin and restrict the use of options to freighter aircraft. As an existing partner of Terex, CML suggested an alternative option that would offer a significant cost saving whilst still meeting the demands of their supply chain deadlines.
For some time, CML has been providing its clients with a rail service from China. With 12 loading depots, this service at rst glance, seemed a perfect solution. However, with the Terex product carrying so many potential health and safety risks, it was essential that speci c handling equipment and loading experience was available at origin. CML’s partners in China provided forklift equipment with a lift of four tonnes and cranes for any larger/heavier products as standard with options for larger weights available.
Initially, Terex Pegson wanted to use air freight due to the short lead times, based on the specific delivery deadline. CML provided a cost saving option for air, as well as an alternative rail solution that met the required deadlines and was a quarter of the cost when compared to air freight. The time frame from initial request to booking was less than two weeks.
With a shorter booking requirement, the ability to offer three departures a week from multiple depots, and the likelihood of being affected by bad weather, rail provided CML with a much more reliable service than sea, as well as a greater level of flexibility for bookings. In addition to this, it offered a stable and faster transit time, which it was able to reduce further by terminating the rail freight delivery in Germany and delivering overnight by road to the UK on a vehicle designed to carry larger and heavier loads. This option resulted in a production plan that was achieved on time and with minimal impact to overseas suppliers and budget.
To help track performance, CML set up KPIs including On Time In Full (OTIF) and cost management as standard, as well as automated track and trace reporting from its CargoWise freight management system to allow Terex Pegson to create their own KPIs and automated reports via their access to CML’s online portal.
The difficulty handling this product is something that many partners are unable to overcome. However, having worked with this product for over 20 years and being aligned to partners that regularly handle abnormal cargo, CML’s expertise allowed a smooth transition of services.
The whole process was made simple by the team at CML and took less than two weeks to implement from initial discussion to first departure.Graham Wicks,
I would like to thank CML for providing a professional service and timely resolution that helped prevent a serious line down situation.
Material Scheduler at Terex Pegson