Outbound logistics optimization for automotive components manufacturer

25
CATI interviews.
5
Expert interviews.
1
Predictive model.

CLIENT

India based original equipment manufacturer for automotive components.

OPPORTUNITY

Expecting a significant increase in demand, the client was facing difficulties in solving logistical challenges and optimizing its supply chain, particularly for transformation and outbound logistics. SG Analytics was engaged to analyze the inventory management data, outbound logistics networks, and warehousing data aiming to increase the efficiency of the client’s processes.

SOLUTION

The team began the project with a current state assessment of the outbound transportation and distribution network data. Although several regional optimizations had been performed, it was evident that the client’s logistics network design was insufficient to handle the expected demand growth.
  • A team of experienced primary research analysts conducted CATI interviews with 25 respondents including third-party logistics providers, distribution and dispatch centers, and warehousing companies to gain a data-backed understanding of the regional outbound logistics landscape.
  • SG Analytics also conducted 5 qualitative interviews with the client’s competitors’ key decision makers to assess their expectations and approach to solving the logistical challenges.
  • Following, SG Analytics collected and standardized data across the client’s outbound chain to identify long-term bottlenecks and frequently occurring short-term bottlenecks that limited the capacity of the whole supply chain.
  • Based on the client’s data and assumptions and the primary research results, SG Analytics created a predictive model to compare the current state and the projected future state and assess different options to enhance the supply chain capacity.

VALUE DELIVERED

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1
SG Analytics provided the client with a detailed breakdown of different methods to achieve enhancements in its logistics network and calculate the return on investment.
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2
The client used SG Analytic's model to increase the efficiency of its processes and enhance the capacity of its outbound logistics.