Enhancing and automating processes to improve user productivity by 50 percent and data accuracy by 70 percent

Streamlining logistics

Tenneco, a global leader in automotive parts, specializes in producing a variety of components, including shock absorbers, struts and exhaust systems. As a key player in the automotive sector, the company operates in a fast-paced, global market where supply chain efficiency is paramount.

With an increasing need to streamline logistics, Tenneco turned to Siemens Digital Industries Software’s AX4™ software, a digital logistics platform, to solve its supply chain challenges.

AX4 is part of the Siemens Xcelerator business platform of software, hardware and services.

Lacking a centralized TMS to support premium freight

Before adopting AX4, Tenneco faced significant challenges managing logistics across its global operations. The company handled freight bookings manually via phone and email, leading to delays and inefficiencies. Although they had a database for tracking premium freight, there was no unified system to manage the entire transportation process, resulting in higher costs for urgent shipments. Tenneco’s goals were clear: they needed to streamline operations and enhance transparency.

For this, the company knew it needed a transportation management system (TMS).

Choosing a comprehensive shipment management platform

After carefully evaluating several TMS providers, Tenneco selected AX4 for its flexibility, integration capabilities and cost-effectiveness. Leveraging AX4 offered a comprehensive platform that covered Tenneco’s needs, from managing freight bookings to premium freight management.

One significant advantage was the automated request for quotation (RFQ) process and approval workflows for premium shipments, which reduced manual intervention and delays. Additionally, Tenneco chose AX4 due to the system’s capabilities for real-time shipment tracking and integrated tools for monitoring.

Implementing and training super users

Tenneco worked closely with Siemens to implement AX4 across its global logistics network. Siemens provided in-depth training to ensure Tenneco’s team could manage and adapt the system independently, enabling a smooth transition. The key to success was designating “super users” within Tenneco, who led the rollout and trained others across various regions.

Transforming freight management

By implementing AX4, Tenneco transformed their management of freight operations, particularly for premium shipments.

“Using AX4 allowed us to centralize our logistics operations and manage premium freight more efficiently,” says Katja Muenster, integrated supply chain process manager at Tenneco.

The system encompasses all aspects of premium freight management, including spot order processing, approvals and transport order tracking, ensuring efficient handling of time-sensitive shipments.

When a product requires premium freight, the requester logs into AX4 and uses a dedicated template to input essential details such as business unit, transport mode and shipping specifics. This streamlined process eliminates manual intervention, providing full visibility over shipment data.

AX4 then displays a list of suitable carriers based on shipment type and regional availability. Once the requester selects an option, the system automates the RFQ process by sending carriers an email with a link to submit quotes. Carriers can provide multiple quotes if better solutions arise, promoting competitive pricing. This has
significantly enhanced collaboration with carriers. Additionally, the system’s intuitive design allowed Tenneco’s carriers to adapt quickly, ensuring smooth shipment management during and after implementation.

“Using AX4 has significantly streamlined our RFQ process across all four business units,” says Muenster. “With just one click, we can submit RFQs to multiple carriers and comparing all carrier proposals allows us to make well-informed decisions based on price, delivery time or service level.”

Leveraging streamlined approval workflows

Tenneco’s system features a four-tiered approval process triggered by shipment costs. Smaller shipments require a single approval, whereas larger ones need multiple approvers. With a mobile app, approvers can grant authorization remotely, preventing delays in time-sensitive shipments.

After approval, carriers receive automated notifications about their bid status and must provide real-time updates on the shipment from pick-up to completion. This end-to-end integration using AX4 stream-lined the premium freight process, giving Tenneco complete control and visibility from order placement to delivery.

“Operating across Europe and the U.S. means navigating diverse packaging types and metric systems,” says Muenster. “With AX4, our users can seamlessly manage these variations independently, without requiring assistance from Siemens. This empowers us with maximum flexibility and saves valuable time.”

Achieving real-time communication and flexibility

Tenneco’ process supports real-time communication between carriers and the system. Carriers confirm orders and provide updates on shipment progress, including pick up, transit status and delivery completion. This transparency reduced shipment delays and improved reliability.

Using the mobile app’s approval feature ensures timely approvals for premium freight, even when approvers are out of the office. This flexibility eliminated a key bottleneck, allowing Tenneco to manage premium freight more efficiently.

By streamlining communication and enabling competitive quoting, Tenneco strengthened relationships with logistics providers, resulting in faster response times, reduced costs and improved service levels.

“With AX4, we achieved full transparency over our logistics network, which helped us streamline operations and reduce premium freight costs,” says Muenster.

Improving cost efficiency and productivity

Since implementing AX4, Tenneco has achieved impressive results across its supply chain operations. This includes reducing premium freight spending by over 10 percent company-wide, thanks to optimized carrier selection and increased competition. Additionally, Tenneco improved data accuracy by 70 percent, giving them more reliable key performance indicators (KPIs) and detailed insights into carrier performance and allowing for data-driven decision-making. These enhanced insights are shared across plants, helping Tenneco recommend the best-performing carriers in specific regions.

Tenneco also improved user productivity by 50 percent, driven by features like one-click RFQ submissions and the ability to clone premium freight requests for repeat shipments. These tools made it quicker and easier to manage logistics, saving time and reducing errors. Further, the platform’s automation reduces the workload by eliminating manual communication steps and speeding up the approval process.

Looking towards the future

After successfully implementing AX4, Tenneco is well-positioned to continue optimizing its supply chain. The company plans to leverage new advancements in artificial intelligence (AI), enabling more precise logistics planning to further improve efficiency, resilience and sustainability in the future.