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US$ 5 Million

Savings in total supply chain cost by a leading automotive OEM on an export program

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Sector: Automotive

Project: Export of stamping, welded assemblies, and power train of a top selling product to key markets in South East Asia and Latin America

 

Challenges: Poor workmanship with wooden packaging led to several problems including transit damage and rust which caused downtime and rework at customer. Manufacturer was already operating at 100% capacity which subsequently led to more challenges resulting in production peaks and significant production overtime. Further to maintain the continuity of supply chain, parts were air shipped to mitigate revenue loss while additional cost on rework continued to incur

 

Solution: We worked closely with the OEM to scientifically develop and implement a safe, cost effective and scalable packaging system for the export of components. We provided  complete design, testing, validation and mass production and led turnaround in 11 days for three of the most critical parts. Multiple packaging improvement was done  with focus  on quality. Additionally, collaborative workshops  were conducted and various initiatives were undertaken for cost optimization such as  re-engineering, material substitution, pack density and container density enhancement

 

Key Highlights:

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