Logistics and Distribution Strategy

Launching a new warehouse to meet an automaker's requirements

THE CHALLENGE

An international automotive parts supplier with offices in eight countries won a contract with a major North American automaker. The automaker required electronic data exchange (EDI) instead of paper and email, plus an automated, integrated inventory system. The supplier was opening a new warehouse to serve the contract and was starting from zero: no site processes, no systems and a fixed start date.

WHAT WE DID

Translated the automaker's requirements into a clear compliance checklist covering EDI documents, shipping notices, labelling and inventory controls

Designed the warehouse operating model for the new site: receiving, repacking, stocking, replenishment and shipping, with barcode and mobile scanning built in from day one

Evaluated system options and recommended a cloud-based warehouse management system, so the supplier could move fast without building in-house IT

Planned and oversaw the integration between the warehouse system and the automaker's EDI network, including testing of shipping notices and labels before the first shipment

Defined traceability, monitoring and reporting, so management could see stock, product movements and compliance status in real time

Managed the launch: project plan, coordination between the supplier, the automaker and the technology provider, staff training and go-live support

RESULT

Met the automaker's compliance requirements

Better stock accuracy, with fewer losses from entry errors, incorrect quantities and non-compliance fines

Four years later, the business continues to grow, with service levels on target and productivity significantly higher

Lower IT costs, and an operation ready to take on new customers