Timing is everything
Moving over half-million pallets a year with a 99.9% delivery accuracy for an industry leader.
Our customer is a world leader in the joint design, joint development, manufacturing, assembly and after-sales services to the global computer, communications and consumer electronics industry. The company’s factory in Pardubice, Czech Republic, was opened in 2001, and employs more than 5000 people.
Their factory in KutnaHora was opened in 2008 and has 2000 employees with a trend towards 5000 in the near future. The customer procured parts mostly from various vendors across Asia and the Americas. Being an industrial frontrunner, they were looking for a partner to ensure that the parts needed to assemble products in the Czech Republic reached the factory exactly on time.
The customer was facing delay in delivery time due to exceptions when certain parts needed to be screened and reworked on. Storage space was measured more in time than in space, and the factories typically offered only four hours of in-house supply storage space.
To overcome this challenge, it was crucial to understand the importance of every single assembly part and its availability. We started our project management and implementation skills combined with vendor-managed inventory supported by advanced IT systems.
In order to handle exceptions that could potentially halt the influx of parts, we developed 37,000 square metrewarehouses with 40,000 pallet positions and 24/7 response in strategic locations. This guaranteed full visibility of vendor, service provider, and warehouse performance. As a result of this, we could ensure that all relevant partners are completely aware of stock levels and exceptions handling.
The proposed solution gave full visibility of available inventory and a 4-hour lead time from inventory reservation to delivery to one of the nine delivery points in the factory. This resulted in deliveries with on-time accuracy average of 99.9%.
Currently, we handle more than half a million pallets for our customer every year, each holding 3000 stock-keeping units with a declared 99.9% accuracy in factory delivery time.
Our joint monthly performance reviews enabled them to see the inbound performance of every individual vendor both in terms of timeliness, data and material accuracy, and quality of shipments.