Unipart Packing Solutions – Unipart Way Delivers Damage Level Reduction
Over 50% of the Jaguar aftermarket parts were received via contract packers in US and Germany. This increased inbound lead times and consequently inventory levels whilst a number of process issues within the packers and inadequate packaging specifications resulted in high levels of defects and availability loss to the end customer. Packers were paid on the basis of the number of items packed with no incentive to reduce costs.
Unipart re-engineered the inbound supply chain to remove the third party packers in US and Germany and established a dedicated packing operation at its main Jaguar parts distribution centre, reducing waste and the duplicate handling of product. A new commercial model was agreed where our fees were based on outcomes achieved rather than units packed. Packaging specifications were improved and certain parts packed at the point of despatch rather than receipt to improve quality and reduce costs.
Lead times from US and European vendors reduced by 40% and 30% respectively resulting in less inventory and a 75% reduction in lost availability due to packer failure. Creative new packaging specifications have resulted in a 60% reduction in damage levels whilst the application of the tools and techniques of the Unipart Way and exceptional levels of employee engagement delivered over £800k of savings in just the first year.
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