Surprise Yourself With These 7 Benefits Of Integrated Supply Chain For Automotive Sector

Managing automotive logistics is a tricky business and not everyone’s cup of tea. Right from the point where suppliers supply auto parts, during transit, warehousing, up to in plant logistics and to the point where waste management is to be done – you face a lot of difficulties in achieving desired control. To overcome all such bottlenecks, integrated management of supply chain complemented with returnable packaging solutions is the way forward. Easier said than done – implementing such a solution on the ground on your own may lead to chaos.

Integrated Supply Chain

Advisable is to look for experts who take the responsibility of whole supply chain end-to-end along with packaging solutions. Question to ponder upon is how do they do it? The answer lies in following few points –

1. From source to consumption and back to source
When your auto parts begin their journey from supplier’s facility, they pass through multiple levels once they are packaged. There may be a need to store them at a designated warehouse and then again going through the process of repackaging if there is any damage to wooden packaging. All this leads to unnecessary repetition but unavoidable processes considering the existing infrastructure. Bringing in the returnable packaging solutions frees you up of such obstacles as goods once packaged will be opened at the consumption point only. Since packaging equipment remains in a reusable and better state, service provider takes it back to the source. This forms the basis of an integrated supply chain for the auto industry.

2. No compromise on safety
For any business, integrated supply chain would mean nothing if there is not enough safety of the components in transit. Supply chain experts design the packaging solutions ensuring there occurs no damage to the items inside, at any part of supply chain. One of the key features of integrated supply chain is that there is no unwanted loss, least because of mutilation, harms and destruction caused by the improper packaging of costly auto parts. These returnable packaging solutions are successful in effectively achieving this purpose.

3. Leads to optimum manpower count
Handling traditional packaging based supply chain requires comparatively higher no. of manpower utilization at the different stages. It could be while creation of packaging equipment almost every time before the parts are to be transported or while handling the shipment at intermittent storage locations and so on. However, these modern packaging solutions lead to integrated supply chain where packaging equipment need not be manufactured again and again. In addition, this supply chain is self-sufficient and doesn’t require excess manpower at various levels.

4. Customizable for any shape and size
“One size fits all” concept doesn’t bode well for the uniquely shaped auto parts and accessories. Findings also highlight that there is considerable damage to the components due to packaging. To overcome this hurdle, the returnable packaging solutions which can be fully customized to the shape of the parts to be transported, is the way forward. For any component at your facility, packaging equipment can be designed with the best-fit shape and size for complete safety during transportation.

5. Greener environment, greener wallets
With the integrated supply chain, there will be more benefits which are always welcome. Because of returnable and reusable nature of packaging solutions, these are utilized in multiple cycles and can be repaired without any considerable waste footprint. This not only brings in better cost-benefits for your business but enhances your image as a business which cares for the environment.

6. End-to-end control with JIT supply
A very important parameter for an integrated supply chain for auto parts is to remove the random storage points from your supply chain and transport the parts directly to the assembly plant based on usage pattern which can be highly beneficial. Based on business understanding in detail, experts forecast and plan for the requirements at the assembly line.

7. Technology brings in more visibility and efficiency
Auto parts supply chain suffers huge losses due to lack of tracking systems in place. However, in the integrated supply chain, experts bring you the IT tools which enable you to keep a watch on the package in transit. Due to this, inventory accuracy rises and mismatch issues are completely alienated. Thus, overall efficiency is enhanced in your auto parts supply chain.

It is fully evident that you would surely enjoy the benefits of integrated supply chain for your business which you might not otherwise. So, don’t just let your supply chain run on the usual course, be proactive and get in touch with experts who will take the pain to understand your business and redesign how packaging happens in your supply chain.

Holisol is a leading supply chain organization providing solutions in retail (end-to-end fulfillment), Auto & Engineering (packaging & supply chain) and Consulting. Holisol works on the value proposition of Design-Implement-Manage to offer customers an experience of working like their own extended team, with affordable strategic and operational expertise.

Holisol has a workforce of +300 supply chain enthusiasts who are continuously building value through leadership, innovation and relationships. For more information visits us at www.holisollogistics.com