CHALLENGE
A major automotive supplier was taking on additional business and needed to re-evaluate its logistics needs to meet the demands. They were running operations out of a distribution center in El Paso, Texas, while its new customers were located in the Detroit area, Ohio and Canada.
Their objectives were to reduce inventory at the customer level, service the customer with product in less than a day’s time, and reduce premium transportation costs from the warehouse to the customer location.
SOLUTION
The supplier chose Evans Distribution Systems to help meet its objectives with flexible warehousing and transportation services. The two companies worked in a unique partnership where Evans supplied warehousing staff and equipment while the supplier helped Evans set up an automotive operation similar to the El Paso distribution center. The companies implemented procedures in accordance with QS 9000 and established weekly meetings to ensure customers’ needs were continuously being met.
The project initially required 50,000 square feet of warehousing space, but as product moved from its El Paso distribution center, space needs increased. Evans’ commitment to flexibility allowed them to expand within the same facility. A sequencing operation was added, which jumped the needed space to approximately 150,000 square feet. The new distribution center ultimately supplied product to twelve seat assembly plants in the regional area.
BENEFITS
As a result of the partnership, the supplier met its objective to cut costs by reducing plant inventory and providing just-in-time delivery service to the plants. By locating its operation geographically close to its customers, they was also able to save money through improved transportation route efficiencies.