Automotive OEM Domestic Inbound Logistics Optimization
Challenge
The client faced multiple supply chain complexities as vehicle production scaled, including managing dozens of tier-one and tier-two suppliers across Germany, France and wider Europe, ensuring just-in-time delivery to minimize in-transit inventory while avoiding costly line stoppages and securing flexible transport capacity amid fluctuating production volumes.
Solution
Kadow Management consulted with partners for DHL to offer a design for a bespoke inbound-to-manufacturing solution tailored to the plant’s lean logistics principles, establishing consolidation centers and cross-dock facilities across Europe to aggregate parts from multiple suppliers. Further implementing GPS-enabled telematics for real-time in-transit visibility integrated with the client’s transport management system and deploying route optimization algorithms to maximize vehicle utilization and reduce carbon footprint. A dedicated European control tower coordinated pull-trigger systems, supplier communications and yard management to ensure seamless sequencing.
Outcome
The integrated solution minimized line-down risk through enhanced visibility and control, achieved measurable cost optimization via parts consolidation and route planning and delivered the flexibility to accommodate inevitable volume and process changes inherent in automotive manufacturing.