CHALLENGE

A major Tier 1 automotive supplier had a suboptimized, inefficient network of daily direct routes, weekly direct routes, and weekly LTL deliveries from its suppliers to one of its plants. They sought Transfreight’s expertise.

SOLUTION

After analysis of the logistics and business situation, Transfreight recommended use of a dedicated crossdocking facility. We set up subroutes and direct routes to the Tier 1 supplier, sequenced delivery routes to the OEM’s plant, and provided traffic management, on-site logistics design support, and crossdocking services. Freight was consolidated at the crossdock and shipped via daily main routes kanbaned at the crossdock to the Tier 1’s plant. Additionally, daily direct routes that were kanbaned at the crossdock were sent directly to the OEM’s plant. Transfreight implemented discrepancy reporting, kanbaning, a daily logistics report, KPI tracking, and kaizen techniques

RESULTS

Specific benefits that the customer received included:

• improved cubic efficiency, process design, inventory management, and internal conveyance;
• reduced external logistics miles, on-site space requirements, double handling, and number of dock doors; and
• significant internal logistics savings.