Industries we serve
Automotive
Streamlined network operations from manufacturing support to dealer distribution
At GXO, the Lean methodologies that we utilize have deep roots in automotive logistics, augmented by years of technology development. Our innovative solutions unlock the full potential of your supply chain, from digitally managed service parts distribution to streamlined inbound flows, Kaizen workshops and support for assembly line and just-in-time production. We’ll reduce excess inventory to drive down costs, give you visibility from supplier to end-user and collaborate with you to optimize your network and transportation.
Key automotive logistics capabilities:
- Accelerated supplier onboarding
- Demand planning
- Kitting, light assembly, point-of-use delivery and other manufacturing support
- Powerful digital tools for supply chain analysis
- Precise inventory management at lower overhead
- Reverse logistics management
- Supplier e-portal with network-wide visibility, including shipments in transit
- Vendor-owned and vendor-managed inventory services
Specializations:
- Aftersales support
- Components and parts
- Contract manufacturing
- Logistics for finished vehicles
- Logistics for tires
- OEM distribution
Case study
A rapid, automated solution for parts distribution
Opportunity
A company that sells and services world-class propulsion and power systems for large marine and land vehicles was facing challenges with accuracy and turnaround time in their aftermarket parts distribution.
- Accuracy: With 40,000 SKUs, 80% small parts, inventory and order accuracy are challenging to maintain
- Turnaround time: Using traditional material handling equipment, only 6-8 lines could be processed per hour causing order backlogs and slow turnaround even on emergency orders
- Safety: Handling heavy/bulky parts such as engine blocks and crankshafts requires special equipment and training
Solution
GXO’s solution introduced a 5,000 square-foot automated storage and retrieval system (ASRS) handing 40 lines per hour enabling a 5-6x increase in productivity. GXO operates using the customer’s SAP extended WMS to provide inbound inspection, inventory management and order fulfillment to their distributors. The site processes approximately 200 unplanned, emergency orders per day.
Value added services include packing, boxing/crating, carton construction, kitting, ITN processing for international shipping and customer service helping distributors with returns and quality issues.
Results
- Startup: The site launched on time and under budget
- Reduced backlog: Reduced backorders from $32 million to just over $200,000 in the first six months
- Key metrics:
- Emergency orders: Reduced fill time from 24 hours to same-day
- Standard orders: Reduced fill time from 72 to 24 hours
- Inventory accuracy: 99.99%
- Order accuracy: 99.67% or above
- Continuous improvement: GXO’s formal customer excellence planning program aligns the operation with the customer’s forecast, budget, productivity goals and labor plan on an ongoing basis