Customer
Global Auto OEM’s engine components manufacturing arm in India
Problem
High export rejection rates due to damage
Cause
Engine components manufactured in India were exported to other plants across the world. The entire activity was managed in-house, from sourcing of packing material, invoicing, dispatch to transportation. The packing quality was below the required standards and mostly handled by contract labour.
KGC’s Approach
Comprehensive 3PL Plan
KGC proposed a comprehensive third-party logistics concept (Plant-to-Port) which involved taking over all activities including sourcing of packing material
Investigation
Reasons for damages were investigated and identified
Modifications
- The quality of packaging was changed, as was the vendor
- Wrapping, sealing and vacuum machines were introduced as part of the modifications
Skilled Manpower
Contract labour was replaced with KGC’s skilled employees for packing work
Ownership
KGC managed the entire operation from picking the components from the assembly lines to dispatching them to the port
Outcome
- Zero rejection/ damages rates during the contract term
- 100% achievement of export targets
- Substantial increase in the orderbook as the receiving parties were delighted with the improvements
- Commercials were agreed on “per-part” basis that offered flexibility to the customer