Streamlining Logistics in China for Global Automotive Safety Equipment Manufacturer
The client, a globally leading manufacturer of safety equipment for the automotive industry, already had a strong presence in China with 16 plants and over 100 customers spread over different locations in the country. However, due to the gradual expansion in the region, logistics had followed suit without a holistic overview.
As such, ARC Consulting was approached to analyze the requirements of the client and to develop an optimal logistics solution, focusing on bundling and warehousing to reduce cost and increase efficiency.
ARC Consulting started of with mapping all current logistic activities to identify bundling possibilities and redundancies. The current deliveries from different factories were consolidated in warehouses to minimize costs and streamline transportation.
A key question was whether warehousing should be owned by the client or outsourced. Based on extensive analysis of different options as well as negotiations carried out by ARC Consulting with several warehousing providers, the latter option was deemed considerably more advantageous for the client´s needs.
Finally, a comprehensive implementation plan was presented to the client, extensively streamlining logistic activities.
Proposed changes and implementations already carried out as a part of the project significantly improved efficiency and reduced costs of the logistical operations in China, with key metrics improved as following:
- Lead time Decrease: 17%
- Decrease in Delayed Deliveries: 15%
- Cost Decrease: 22%