Logistics is the integrated management of all activities required to move materials, components and products along the supply chain, from suppliers to manufacturing sites and out to the sales network.
The main objective of logistics managers is to coordinate these activities in a way that meets corporate and customer requirements, striving to maximize efficiency and reduce the impact of transport on the environment.
For Fiat Group, the efficiency and environmental sustainability of logistics processes are key factors in creating value. Together with minimizing costs and optimizing freight flows, the Group’s efforts are centered on reducing environmental impact by cutting logistics-related emissions and minimizing the use of non-reusable packaging.
The Group published its Green Logistics Principles in 2010 an effort to harmonize the approaches, measures and methods of interaction with logistics partners adopted by the individual sectors.
Consistent with the Fiat Group Environmental Guidelines on which they are based, these principles provide guidance on reducing environmental impacts, focusing on four main areas:
- increase in low-emission transport
- use of intermodal solutions
- optimization of transport capacity
- reduced use of packaging and protective materials
In 2012, the Green Logistics Principles will be extended to Chrysler Group, potentially with adaptations.
Reflecting the important role that it plays in ensuring continuous improvement in both the production system and the supply chain, the World Class Manufacturing program includes logistics as one of its technical pillars. The focus of World Class Logistics is the definition of integrated logistics processes at plants and in planning for the supplier network, in order to meet the requirements of safety, ergonomics, eco-compatibility and transport flow optimization.
Fiat’s Logistics Engineering unit and Chrysler Group’s Logistics department connect manufacturing with the logistics function. In 2011, they continued their work as the centralized organizations with group-wide responsibility for setting guidelines and standards. Through the re-engineering of material flows and the application of “Just-in-Time” methodology, processes have been improved by eliminating stock and reducing material handling, delivering only what is needed, where it is needed, at the right time.
At Chrysler Group, the Supply Chain Management team oversees the entire supply chain through upstream demand planning; production scheduling and capacity management; supplier delivery risk management; as well as transportation planning, purchasing and cost control. Chrysler Group’s worldwide logistics operations are managed centrally, allowing the company to choose the most effective mode, equipment and route for a given supply chain requirement.
At the end of 2011, Chrysler Group logistics specialists joined the Fiat Group Logistics Sustainability Team whose objective is to promote the dissemination of environmentally friendly practices throughout the company.
In January 2011, Chrysler Group became a SmartWay partner with the US Environmental Protection Agency (EPA). The SmartWay Partnership is a collaboration between the EPA and the freight industry that helps companies reduce their transportation supply chain carbon footprint through the implementation of innovative approaches. Starting in September 2011, all Chrysler Group’s US inbound parts and materials carriers were SmartWay Partners and it is now a requirement for carriers who do business with Chrysler Group. In addition, 70% of Chrysler Group‘s contracted carriers for finished vehicles are Smartway partnered, representing a 67% increase over 2010. In 2011, 98% of all miles travelled for Chrysler Group vehicle deliveries were done by Smartway carriers.
Inbound transport of components and materials to Group plants is handled either by external transport providers engaged by the company or managed directly by the material suppliers themselves.
Roughly one-quarter of Chrysler Group’s inbound truck freight is handled by Chrysler Group Transport, Chrysler’s in-house automotive parts carrier.
Outbound transport of finished goods to the sales network is either handled by external transport providers engaged by the company or by i-FAST Automotive Logistics S.r.l. (a Fiat Group company).
For spare parts managed by Fiat Parts & Services and Mopar¹, inbound transport (to warehouses and distribution centers) is either handled by external providers engaged by the company or managed directly by suppliers themselves. Outbound transport of spare parts to dealers is handled by external logistics operators that are not managed by the Group.
(1) Chrysler Group’s service, parts and customer care organization 
