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Door-to-door flow management

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.

To get more information about its flow management project or our services, please use our contact form.

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