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Rail News Home Rail Industry Trends

7/31/2001



Rail News: Rail Industry Trends

UP, DaimlerChrysler form logistics company to speed vehicle shipments


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Union Pacific and DaimlerChrysler Corps. July 31 formed Insight Network Logistics, a Detroit-based wholly owned UP subsidiary that would use the Internet to track nearly 3 million Chrysler Group vehicle shipments annually from assembly plants to North American dealers.
Through Insight Network Logistics, DaimlerChrysler plans to reduce vehicle delivery times 30 percent within a year; the company's current vehicle delivery time averages 12 days.
The logistics company — to be operational in the fourth quarter — would electronically track vehicles using Vin Vision, software and communication technology developed by Union Pacific Railroad and UP subsidiary Transentric, designed to provide total shipment visibility and decision-support tools that help identify deviated shipments.
Insight Network Logistics plans to deploy personnel around the country to help improve local processes, and coordinate and integrate efforts between railroads, motor carriers and vehicle distribution facilities. About one-third of the logistics company's employees would come from UP; the remainder, automotive and transportation industry recruits.
UP named Roland Fortner, the railroad's director of automotive sales for DaimlerChrysler, general manager of the logistics company. Fortner's served UP for more than 20 years, holding key automotive- and intermodal-unit positions.
"We understand DaimlerChrysler's delivery network, business objectives, information systems and processes, which will help us hit the ground running and drive immediate improvements in delivery times," said UP Chairman and Chief Executive Officer Dick Davidson in a prepared statement.
UP since January 2000 has been DaimlerChrysler's sole western rail carrier; the railroad also moves intermodal stacktrains for the automaker's U.S./Mexico auto parts supply chain.


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