Plastic Omnium – Delivering Innovative Solutions to Eliminate Customer Back Orders
Plastic Omnium, one of the UK’s leading suppliers to the automotive industry, was experiencing significant capacity problems in its assembly and packing operation of bumpers. Consequently performance levels to the Jaguar Land Rover aftermarket business were poor with a high level of arrears and customer back orders. Plastic Omnium were considering investing several millions of euros in moving the assembly operation to France to create capacity, although this would have further increased lead times and inventory across the supply chain.
Deeply understanding the needs of both Plastic Omnium and the Jaguar Land Rover aftermarket business, Unipart created space within its Coventry distribution centre and provided an innovative solution to assemble and pack all non current bumpers for the aftermarket alongside the main Jaguar parts operation. Drawing upon the Group’s manufacturing skills and expertise, 38 machines were received, installed and commissioned over a 2 two week period with a seamless transition and implementation. During the last four years the Unipart team has continuously improved the operation allowing the business to expand significantly.
Arrears of over 3,000 items and customer back orders of 300 lines were eliminated within ten and four weeks respectively of implementation. Most importantly these results have been sustained at these levels over the last four years. The solution avoided a multi million euro investment and has also delivered a 30% reduction in inventory and a 50% reduction in storage space. As a result the range of services provided has been extended and the volumes increased, but all within the same footprint and with the same number of people.
“Since producing bumpers at Baginton our supply situation to both Caterpillar and Unipart has improved immensely - availability is high and most importantly, we are maintaining this. Caterpillar in particular has seen the biggest improvement - arrears were at c.3,000 parts in October 2010, and are now schedule compliant. This has resulted in a dramatic improvement in our service level performance”.
Pam Morton, Plastic Omnium