[AL AWARDS Stories #8] Optimising and managing a full packaging solution for a large car manufacturer

08 June 2018

The last entry that has been shortlisted for the Automotive Logistics Awards 2018 is about a project of new packaging solution for a car manufacturer in the category “Packaging & materials handling automation award”.

The initial situation

Two OEMs were owning and sharing a pool of packaging. The packaging management and transport were operated by two different logistics providers. The service level was quite low due to a limited inventory management. 

From this observation, we identified their need to have a dedicated packaging solution to sustain its growth as current manufacturer’s system led to shortages of packaging on supplier plant. 

Furthermore, our clients had specific expectations:

• Full service on Packaging: inventory, stock level, quality audit

• One single supplier optimising the flows, packaging availability and reducing cost

• Getting cash back from its old pool

 

Our solution

How did we set-up this solution?

A pool solution allowing suppliers to order what they really need has been implemented by GEFCO with:

• A unique central team for flows and Packaging Management and a contract manager close to customer sites 

• 2 high-standard foldable packaging 

• A dedicated implementation project team using standard processes

• Co-branded communication to suppliers with new Standard Operation process

 

What were the logistics solutions we developed?

  • Phase In / Phase out solution to switch the current packaging with new one.
  • Empty packaging “pool” management:
    • Collection of empty containers from the customer’s plant
    • Delivery, according to suppliers’ orders 
  • IT Track and trace solution: orders and stocks management 
     

Performance & results

Cost

  • Cost reduction of the Packaging Management, pool sized according to exact need and common management team
  • Reduction of asset exposure of OEM: packaging investment managed by GEFCO
  • Truck loading optimisation with the new container

 

Quality/ health & safety

  • Improvement of the packaging quality and the parts integrity
  • Better part handling for operators
  • High Service Level (KPI’s)

 

Lead times

  • Optimisation of the packaging return by reduction of kilometers/container thanks to the pool effect

 

Key figures

  • 17 countries
  • 3 OEM plants in Europe
  • More than 280 suppliers in Europe
  • Supply of 128,000 packaging (2 models)
  • Average Monthly movements: 175,000
  • Packaging on-time and complete deliveries: 97.5%

17

countries

175,000

average monthly movements

97,5%

packaging on-time and complete deliveries

Share