New Auto Supplier Integrated Without Crashing Production
A parts suppliers experienced financial difficulties, and informed a major automotive manufacturer that it would cease operations in a matter of days. Nippon Express helped the firm avoid a disastrous supply failure by enabling the automaker to begin shipping parts from a new supplier in China to various plants in North America nearly instantaneously.
The automotive manufacturer’s supplier of door-stops succumbed to the economic downturn and shut down, leaving the firm scrambling for a new supplier with less than a week’s notice. The auto firm identified a new supplier in China and contacted Nippon Express with a request that it would need the parts to begin shipping from this supplier immediately. There were 12 different part types, which would be shipped from China to four plants, in Ohio, Alabama, Mexico, and Canada.
Nippon Express was tasked with the problem on a Friday and immediately began working on a logistics process for the new supplier. The firm assembled a team quickly, acquired the 12 different parts for analysis, created an inspection process, established an efficient freight forwarding solution, and finalized a logistic plan. The parts were being packaged and shipped on Monday, just two days after the request.
Nippon Express devised a logistics plan to freight forward 12 parts from China to four automobile plants in three different countries in two days. Had the assembly lines been stopped due to logistic delays regarding the doorstops, it would have prevented 1,920 cars from being made daily at the four plants, thereby helping the automotive manufacturer avoid an estimated $43,200,000 loss per day.