US$ 5 Million
Savings in total supply chain cost by a leading automotive OEM on an export program
Sector: Automotive​
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Project: Export of stamping, welded assemblies, and power train of a top selling product to key markets in South East Asia and Latin America
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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
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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
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