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Case Study: Automotive OEM

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Big Three Automotive OEM Significantly Reduced Packaging-Related Costs via Optimized Processes

This North American automotive OEM uses standardized and specialized returnable containers to ship parts from suppliers into assembly plants. Their privately-owned fleet of approximately half a million containers was a significant challenge to manage and they were often faced with premium expenses for freight, expendable safety stock and asset loss and damage. 

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CHEP managed 17 North American plant locations with a team of 35 to achieve these results:

CHEP Containers Helped a 'Big 3' Auto OEM Save Big

Challenge

The OEM saw great potential for reducing container losses and cutting costs related to sub-optimized packaging management. The OEM needed a partner to identify the root-cause of container issues and provide support for route optimization, supplier training and process monitoring at 17 powertrain plant locations in the US/Canada and 7 assembly and powertrain plants in Mexico.

Solution

Partner with CHEP to identify root-cause challenges with the OEM's privately-owned returnable container fleet and implement plant-level solutions to reduce costs.
 

Key OEM Benefits:

  • Reduced one-way packaging use
  • Reduced container losses
  • Improved supply chain data and visibility
  • Scalability and ease adapting to changing volumes
  • Process quality control and assurance
  • Simplified asset recovery

This partnership required:

  1. Customer service to take care of all supplier issues related to container management processes.
  2. On-site OEM and supplier plant support.
  3. Full supply chain asset management with the ability to back-bill for losses.
  4. Ability to receive supplier ASNs (Advance Shipping Notices) with zero failures.
  5. Standardized reporting enabling suppliers and plants to track progress and evaluate results.
  6. Implementation of a scalable, repeatable solution to allow the OEM to focus on its core business rather than container management.

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Case Study: Automotive OEM | CHEP