A Global Automotive Manufacturer was struggling to recognize supply chain efficiencies in its US distribution centers, which receive, warehouse and distribute every spare part associated with every vehicle sold by the manufacturer.
Each of these parts, from the smallest nuts, bolts and washers to “high value” parts like hoods, fenders and windshields, were shipped in high-bulk formats from both Asian and domestic sources and received in six US-based DCs.
Once received, these parts required break bulk and repack services to prepare for US trucking/parcel shipping. US-based distribution center employees were distracted by their attempts to solve these packaging requirements, which lead to:
• Large numbers of damaged parts
• Poor customer/dealer feedback
• Significant increase in time and cost
• Negative impact on margins
Coregistics worked closely with the customer to develop and implement an approach that redesigned the entire parts supply chain.
- Assumed control of all packaging efforts in all five US distribution centers
- Transferred the majority of packaging initiatives from Japan to the US
- Developed packaging specs for 17,000+ parts, growing daily
- Initiated a flexible staffing approach that retains resources with customer-specific knowledge
- Applied an innovative approach to technology and Business Intelligence
- Tailored to address the customer’s specific needs and KPIs
- Interacts fully with customer’s WMS
- Introduced Coregistics packaging machinery and equipment
- Developed customer-specific processes and policies, including Continuous Improvement initiatives,
that lead to stronger execution
Resource Distraction Elimination
By removing the distraction associated with non-core packaging initiatives and requirements, US-based distribution center employees were freed up to focus on the global automotive manufacturer’s core distribution needs.
Redesigning the entire parts supply chain lead to significant annual cost savings.