Door-to-door flow management

Original Equipment Manufacturer Logistics Solution:

An original equipment manufacturer (OEM) faced logistical challenges in transporting parts (car seats) from its Tier 2 in China to its Tier 1 in France. To address these challenges, the OEM asked its Tier 1 to partner with SNECI, a third-party logistics provider. SNECI offered flow management services to solve the logistical problem encountered by the OEM and established a third-party contract with the supplier in China (Tier 2) and Tier 1 in France.

The contract covers the following aspects:

• Production planning: SNECI collaborates with Tier 1 & 2 to establish an accurate delivery plan, ensuring that the necessary parts are available on time. SNECI manages the scheduling and payment flow as the local contact.
• Transportation: SNECI handles the transportation of the parts from China to the Tier 1 facility, meeting deadlines and quality requirements. SNECI takes care of customs & tax issues.
• Storage: SNECI maintains a warehouse near Tier 1’s facility, allowing for efficient storage of the parts and ensuring quick availability.
• Quality support: SNECI ensures that the required specifications are met in being the daily contact with the plant.

Part Buying and Reselling Process

SNECI purchases parts from the Tier 2 supplier in China and then resells them to Tier 1. SNECI handles the logistics of this process, ensuring that the parts are delivered to the Tier 1 supplier on time and in good condition.

Responsibility Management

To ensure effective coordination between the various stakeholders involved, SNECI implemented a RACI (Responsible, Accountable, Consulted, Informed) matrix. This matrix clearly defines the roles and responsibilities of each stakeholder.

SNECI’s Achievements

• Production plan according to EDI,
• Trading of parts (purchase Ex-work and delivery DDP),
• Quality management,
• Warehouse management,
• Price negotiation,
• Relabelling of parts,
• Inspection,
• Delivery from China to France:
  >>> By boat to the warehouse,
  >>> By truck from the warehouse to the customer site,
• Safety threshold management (FIFO operations),
• Implementation of metrics / KPIs to monitor activity.

Key Figures

• 5 models of seats,
• 1 container (40 foot) every two weeks,
• 5000 parts transported per month,
• 2250 pallets transported,
• 100 % service rate.

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