Volvo Gets Proactive About Logistics

Volvo Logistics Corp. is putting about $10 million into a project to simplify the systems that support inbound shipments around the world from more than 4,000 suppliers and via 200 carriers.

The wholly owned subsidiary of automaker AB Volvo is implementing Global Logistics Technologies Inc.'s G-Log Global Command and Control Center software as the foundation of the system. Volvo Logistics customers, suppliers, and transportation partners can access the system via the Internet to find out the status of any shipment.

"Today we have a reactive process," says Peter Andell, VP of inbound business and logistics development at Volvo Logistics. "What we want is a proactive tool. If something goes wrong, the system can automatically give alerts." Volvo Logistics will also use the software to optimize its transportation network and find the best shipping routes at the best price.

It will begin running pilots next spring, then start implementing the software in August, beginning in Sweden, then moving to operations in Belgium and the United States. Volvo Logistics, which provides services for all of Volvo's businesses and Ford Motor Co.'s Jaguar and Land Rover brands, expects to reap a return on its investment within three years.