Rivian implements software to optimise planning of parts logistics networks

The EV manufacturer will adopt Agillence’s Lean Logistics Optimizer (ALLO), software that is designed to enable part-level, simultaneous optimisation of network design, order frequency, detailed routing, 3D stowage and packaging across multi-tier inbound networks.

The software uses data to minimise logistics cost while maximising flow efficiency. Rivian intends to use it to “help address complex network optimisation challenges”.

Michigan-based Agillence offers its solutions on a SaaS subscription basis, with customers in the automotive industry including OEMs such as Toyota and Nissan, tier suppliers and logistics service providers. The solutions provider was named Nissan’s “Supply Chain Management Innovation Partner of the Year” at the automotive manufacturer’s annual awards ceremony for North America.

"Rivian's EV supply chain requires exceptional agility and precision,” said Srini Paruchuri, vice president, customer strategy and solutions at Agillence. “We're honoured to be selected to support the design of a supply chain that is operationally efficient and aligned with their commitment to carbon-neutral transportation.”

Hear more from Rivian's Dan Schwartz on the Red Sofa in Detroit

Dan Schwartz, senior director, global distribution operations - commercial at Rivian, discusses how service parts logistics differ for EVs and ICE vehicles, as well as what distinguishes Rivian from traditional OEMs.

Describing the contract win with Rivian as “a proud milestone” for Agillence, Paruchuri added that ALLO can help OEMs like Rivian design “agile, efficient and sustainable” logistics networks.

Speaking on the Red Sofa at Automotive Logistics and Supply Chain Global, Dan Schwartz, senior director, global distribution operations - commercial at Rivian, emphasised the importance of efficient service parts logistics, noting that customers don’t want to wait days or weeks for backordered parts.

“Providing that Amazon-like experience, getting material forward, distributing it to our service centres, to some of our collective partners in the 3P world to be able to repair those vehicles quickly creates [a] great experience [for the customer],” he elaborated.