Logistic optimisation
Optimising logistics across the supply chain
Working with a leading electronic appliance manufacturer, we were tasked with putting in place "pull processes", led by production, to optimise logistics across their entire supply chain.
With our total logistics expertise, global network of carriers, packaging and warehouse management knowledge - SGL Europe were able to exceed our customer's expectations to enable vastly improved, efficient operations.
Our solution
Through detailed analysis and negotiations we designed the most cost-effective, efficient flow from supplier factories to our client's production plant, eliminating the need for a secondary warehouse. We removed all unnecessary processes and added significant value through optimised logistics and continuous improvement.
We also improved the visibility of overseas stock and achieved replenishment of parts only as and when needed at the assembly line so optimising production. And a Milk-run for domestic parts was created to improve load optimisation.
Our warehouse management uses disciplined lane storage, clear signage and Kanban systems to provide just-in-time supply of parts to the warehouse and to the assembly line. We also developed optimised packaging of all parts and equipment.
Results/Benefits
As well as helping the company select the best traffic routes, we achieved a price reduction on opening, running and managing a highly sophisticated Milk-run activity covering three external warehouses. We also helped the company select the best traffic routes.
Pull logistics and just-in-time deliveries mean no wasted space or time in the warehouse and production plant. It maximises logistics to keep the production line running smoothly without unnecessary stoppages.
Thanks to full control and detailed preparation throughout, we have reduced the number of trucks used for deliveries from/to all the external warehouses from 13 trucks to 3 trucks and 5 trailers - all operated by SGL Europe.
We achieved:
- Smooth, uninterrupted production operations
- Seamless flow of materials from supplier to plant
- No more wasted space in delivery trucks
- Radical reduction in number of trucks
- Optimised packaging of all parts and equipment
- Ongoing system of continuous improvement
- Ongoing added value across the supply chain
Next steps in continuous improving logistics
In line with our commitment to continuous improvement, the next step already has client approval. Our plan is to extend this activity to the remaining areas for a second production facility. Simultaneously we intend to open the Milk-run for their main national material suppliers.
To accomplish this we will undertake detailed analysis of the current material flows together with preparations work and negotiations with suppliers.
Interested in finding out how we optimise your logistics to save you money, time and space? Get in touch now to start the ball rolling...