AUTODRIVE INC. – UNTANGLING A JUST-IN-TIME NIGHTMARE
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The Client: AutoDrive Inc., an automotive manufacturer implementing a Just-in-Time (JIT) assembly line.
The Industry: Automotive Products Manufacturing
The Problem: AutoDrive's new JIT system was failing. A critical component, a specific microchip from a supplier in Taiwan, was experiencing consistent 2-3 week delays due to port congestion and complex multi-modal transport (sea-air-land). This was causing production line stoppages, costing the company over $200,000 per month in idle labor and lost production.
Rock Global Logistics' Solution:
End-to-End Visibility & Control: Rock Global moved the shipment from a fragmented model (managed by multiple parties) to a single-point solution. They took control from the supplier's dock, managing the entire journey.
Dynamic Routing: Instead of a fixed sea-air route, Rock Global implemented a dynamic routing system. Using their proprietary logistics platform, they could re-route shipments in real-time based on port congestion, flight availability, and cost. Some shipments went pure air freight during critical shortages; others were switched to less congested sea ports.
Consolidation & Deconsolidation Hub: Rock Global established a strategic consolidation hub in South Korea. Components from various Asian suppliers were gathered and shipped together in optimized loads, reducing costs and simplifying the supply chain for AutoDrive.
The Result:
95% On-Time Delivery: Within three months, Rock Global improved on-time delivery for the critical component from 60% to over 95%.
Production Stability: AutoDrive's assembly line achieved the stability required for its JIT model, eliminating costly production stoppages.
15% Cost Reduction: The optimized routing and consolidation strategies led to a 15% reduction in overall logistics costs for AutoDrive's Asian supply chain.