The Problem:
Our client, a leading automotive parts manufacturer, was facing challenges with just-in-time (JIT)
supply to a prominent automotive manufacturer in Vadodara, Gujarat, India. The client's plant
was located 200+ KM from the plant they were supplying, resulting in delays and inefficiencies in
the supply chain. The client needed a solution to set up a warehouse near their end customer to
ensure smooth and timely deliveries to meet the production demands of the automotive
manufacturer.
The Solution:
To address the challenge, our team conducted a thorough location analysis and identified a
suitable site for the client's warehouse near the plant in Vadodara. The site met all the client's
requirements, including proximity to the end customers plant, availability of necessary
infrastructure, and ease of transportation.
The Result:
The new warehouse near was successfully set up and operational within the planned timeframe
of 2 weeks. The operations at the new warehouse resulted in significant operational
improvements:
Improved Supply Chain Efficiency: The proximity of the warehouse to the end customer enabled JIT supply, resulting in improved supply chain efficiency. The client was able to deliver automotive parts to the end customer on the same day improving the TAT by over 45%.
Reduced Transportation Costs: The reduced distance between the warehouse and the plant resulted in lower transportation costs of over 20%, as the client could optimize transportation routes and reduce lead times.
Enhanced Customer Satisfaction: The timely and efficient deliveries to end customer resulted in improved customer satisfaction
Increased Production Output: The smooth and timely supply of parts to the end customer facilitated increased production output, allowing the plant to meet its production targets and reduce production downtime.
In conclusion, by setting up a warehouse near the plant in Halol, our client was able to overcome the challenges of JIT supply and achieve significant improvements in supply chain efficiency, transportation costs, customer satisfaction, and production output. The successful implementation of the solution resulted in a win-win situation for both our client and auto manufacturer