Huddersfield-based supply chain and logistics company SCALA has helped the China National Machinery Industry Corporation Sinomach to improve service levels and reduce logistics costs.
Sinomach, a Fortune Global 500 enterprise, wanted to improve its supply chain and logistics service to particularly help Chinese car-maker GM-Wuling Automobile to improve sales rankings.
SCALA investigated Sinomach’s various processes and analysed issues in each to develop a brand-new operation system for the company. This included integrating cargos from other customers on the same transport routes to greatly reduce transportation costs – enabling larger load sizes and replacing 9.6 metre trucks with much more efficient 17.5 metre trucks.
Sinomach’s warehouse in Liuzhou city was replaced with a SCALA Ocean warehouse, close to GM-Wuling Automobile’s factory, to improve the efficiency of receiving and dispatching goods.
In addition, foldable green recyclable packaging was designed to replace the original disposable cartons to improve sustainability and reduce costs.
After implementing these supply chain optimisation improvements, the company achieved impressive results. Just in Time (JIT) delivery punctuality improved from 89% to 100% and GM-Wuling’s automobile production line shutdown time dropped to zero.
Andy Yang, consultant at SCALA China, said: “Companies such as Sinomach now recognise that integrated supply chain solutions for transportation, packaging and warehousing can achieve remarkable results in improving service, distribution, sustainability, inventory accuracy and reducing logistics costs.
“Faced with the ever-changing market challenges, Sinomach needed a simple, results-oriented, practical and efficient integrated process to achieve the goal of high efficiency and low logistics costs. We were able to provide that.”
Mr. Liang, supply chain director at Sinomach, said: “We set a goal to find a solution that helps us to meet high levels of service on a consistent basis, while reducing overall logistics costs. Since the implementation of SCALA’s integrated supply chain solution, various transportation, packaging, warehousing, inventory, distribution and other issues have been revealed and solved, and we are very satisfied with the results”.