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 solution for electric vehicle parts distribution

Opportunity

A leading manufacturer of electric vehicles faced challenges in distributing spare parts to authorized service centers. As production ramped up on a new model, demand began to strain the customer’s supply chain infrastructure. This led to a wait of 10 days or more for replacement parts in some geographic areas. To ensure a superior experience for service centers and end-customers, the manufacturer sought an automotive logistics partner with North American scale and deep expertise in parts distribution.

Solution

Our GXO solutions team worked with this customer prior to recommending a way forward, ensuring that all needs would be addressed. We discussed how our parts fulfilment models have solved similar challenges in the automotive, aerospace and other industries; provided facility tours; and demonstrated our technology capabilities, including single-point visibility across a parts distribution network. 

Ultimately, we proposed a hub-and-spoke network of distribution centers in major metropolitan areas to serve the United States and Canada. The customer contracted with us to launch the first two hubs in 2020 during the COVID-19 pandemic. To reduce risk, we deployed a quick-start solution that prioritized intake and distribution of about 350 of the most critical SKUs. We also separated the technology implementation from the facility upfit to minimize the number of people working on-site.

Results

  • Successfully launched the first hub within two weeks of contract and the second hub within three weeks; parts ship from both hubs within 48 hours
  • Scaled up each hub to more than 3,000 SKUs, ranging from windshields to license-plate holders 
  • Integrated our warehouse management platform with the customer’s TMS, providing granular-level inventory data, service-level performance data and customizable reporting
  • Using GXO’s systems, prioritized inbound orders to same-day shipment of high-demand parts, largely through expedited air and ground carriers and daily runs to service centers

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