Pursuing cost reduction and efficiency with high-performance solutions for automotive parts logistics.
Supporting end-to-end global procurement with on-site warehouses, automotive-specific systems, and international multimodal transport.
Automotive parts manufacturer (OEM)
Challenge (Before)
In the automotive industry, when launching new models, there is often a discrepancy between projected and actual sales figures. Even if parts are supplied according to the initial plan, this often doesn't match the realities of production. Flexible parts supply in response to demand fluctuations is required, but to bridge the gap between plans and actual quantities, companies are forced to rely on emergency charter flights and air transport for parts, resulting in inefficient logistics.
Furthermore, with the start of mass production of EVs, the handling of imported parts (such as lithium-ion batteries) increased, necessitating the establishment of a new global supply chain. In addition, procuring parts across numerous suppliers required increased efficiency in transportation and dispatching, as well as ensuring traceability at the component level.
NX Solutions
- We have established a warehouse adjacent to the factory, creating a one-stop system for procurement and logistics. This system combines milk runs, inventory management, JIT delivery, and overseas forwarding, and also handles related ancillary processes such as assembly, processing, and performance inspection.
- We have implemented an order placement and receiving system and a container loading plan system specifically tailored for automotive parts. We provide comprehensive support from ordering and receiving parts from manufacturers to repacking at the warehouse, dispatching vehicles, and container loading.
- We have established local bases in line with the distribution of major production plants of Japanese automakers in Asia, North America, Europe, and other regions, building a global network directly connected to these factories.
- For international transportation connecting hubs, we design integrated multimodal transport that balances cost, lead time, and environmental impact, including rail transport between Asia and Europe, and direct factory routes using high-speed ferries within Asia.
- To improve the efficiency of the entire supply chain, we use a center of gravity analysis tool to calculate the optimal logistics hub locations. We also support the design of hub placement and transportation routes that align with the decarbonization trend by providing improvement suggestions that take transportation routes into consideration.
Case Study ① End-to-End Procurement Logistics Support for EV Parts
With the start of mass production of EVs (electric vehicles), the handling of imported parts increased, leading to a consideration of building a new supply chain. NX established a system to consistently manage the entire process from when imported parts are loaded overseas to when they reach the assembly line of the set manufacturer, including drayage at the port, warehousing, and shuttle services to the set manufacturer. A loading monitoring officer was stationed at the destination to track vessel movements and delivery schedules from the CY (Container Yard). A warehouse management system (WMS) specialized for the automotive industry was implemented in the warehouse and linked to the set manufacturer's production management system.
Case Study 2: Managing transportation status at the component level and reducing man-hours through TMS implementation.
To establish an efficient parts procurement system, we introduced a Truck Management System (TMS). GPS was installed on all vehicles, including those of our partner companies, and a system was put in place to manage transportation status on a parts-by-parts basis, rather than on a vehicle-by-vehicle basis. In addition, we implemented automated dispatch planning that automatically generates the optimal dispatch plan based on conditions such as pickup location, delivery time, and location.
Benefits (Results)
By streamlining procurement logistics starting from a warehouse located near the factory gate and introducing a system specifically for automotive parts, we have achieved meticulous operations that meet the factory's delivery requirements. This has enabled inventory management, including inventory during transit, allowing for just-in-time (JIT) delivery without relying on emergency charter flights or air transport. Furthermore, by ensuring traceability at the component level through TMS (Transportation Management System), we can identify early signs of delays or shortages, preventing assembly line stoppages. This has also led to a reduction in dispatch planning man-hours, strengthening our logistics cost competitiveness.
These initiatives have led to business relationships with over 1,000 domestic and international automobile manufacturers and related suppliers, and continue to expand.
