Business Case:
Woodward Governor Company is a global leader within the aerospace & defense market and the energy market. Net sales for 2010 were $1,475,030. These markets are served by four operating business units: Turbine Systems, Airframe Systems, Electrical Power systems and Engine Systems. Woodward is known as a leading edge technology designer, manufacturer, and service provider for energy control systems and components for the aerospace, power, and transportation industries.
Although headquartered in Fort Collins, Colorado, Woodward employs almost 6000 people in ten locations in twenty eight countries. Through leading edge technology, Woodward products and services optimize the performance of aircraft, power systems, and other industrial engines and turbines.
Woodward had a need to import supply chain data into its ERP system, and turned to nVision Global Technology Solutions to assist in this global effort. nVision developed a custom export file to feed necessary data into the ERP system and created a dashboard which is used to monitor and manage various indicators. Through the audit and payment of freight invoices, nVision is able to populate the dashboard with figures and information that assist in determining and/or controlling such factors as routing compliance, premium and standard service level spend, freight spend by plant by month, freight spend by mode and transportation provider, and in capturing invoice adjustments and other important data.
Woodward has benefited from using nVision in three primary areas that include corporate routing guide compliance, audit savings and cost avoidances and access to advanced business intelligence tools. Woodward has been able to determine and correct over billings, monitor 50 KPI's and better manage freight costs by having access to over 120 data elements that allow very granular analytics.
Suppliers must not only use the correct transportation provider, but they must also use the appropriate service level. If premium or expedited service is used when standard is called for, the cost ramifications are significant and can lead to an additional 15-50% to the cost of a shipment.
Woodward has saved approximately $1MM (€675KK EURO) by increasing adherence to their corporate routing guide. The use of 'rogue' transportation providers has been reduced as well as the use of premium freight. Without access to detailed freight spend data this process would be much more difficult to manage and enforce.
nVision Global Technology Solutions is a leading invoice / invoice audit & payment company providing their customers a positive return on their investment with superior operational business intelligence tools and other supply chain technology. As a global business partner, nVision not only provides a prompt, accurate freight payment solution but industry – leading information management services that help clients maximize efficiencies in their supply chain.