Case Study:
Global Automotive OEM
A world-wide manufacturer of vehicles and automotive components. Founded in the early 1900s, this company is well known for producing innovative, efficient, and functional vehicles. As a major automotive manufacturer, they have rapidly expanded their global presence by investing in new plants in strategic markets.
The Challenge
OEM is facing production delays of automotive components from Brazil to its plant in Detroit. OEM was looking for a solution to avoid Air Freight and plant shutdowns.
Origin : Joinville, Brazil
Via : Mt Clemens, Michigan
Destination: Detroit, Michigan
Volume: 12 TEUs Weekly
Transit Time: 37 Days Port-to-Warehouse
Routing: Ocean and Rail
Our Solution
Our team wanted to create a single source solution that provided the most control while optimizing freight movement, cost and visibility. With an existing relationship and a proven track record of performance, our team single sources the logistics functions associated with the movement of the engine blocks from the factory in Joinville, Brazil to the customer plant in Detroit, MI.
As part of the all-inclusive service, our team performs the Brazilian pre-dray to the port, arranges the freight bookings with the marine carrier, coordinates clearance activities with Brazilian Customs, sends automated manifests to U.S. Customs and coordinates vessel lifting, documentation and payment of port charges in Brazil.
The Result
Our solution saved customer costs associated with air freight, plant shutdowns and inventory. Due to the efficiency of the operation, we were able to reduce the inventory cycle from 37 to 24 days cutting 13 days of inventory carrying cost and eliminating air freight and plant shutdowns associated with this product altogether.
▪ Reduced the inventory Cycle from 37 to 24 days
▪ Eliminated 13 Days of inventory carrying cost
▪ Performs data entry and EDI of all the required ASNs
▪ Sends daily inventory forecasts to keep all key supply chain stakeholders