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Case Study – Parts Supplier Consolidation


Customer consolidates inbound parts packaging to FCA and improves costs, quality and lead time.

  • FCA improved the quality, accountability and consistency on incoming packaging
  • FCA improved the lead time from three days to 24 hours for stock boxes, and 4 hours for emergency orders
  • FCA lowered customer’s costs by providing production-level pricing for single unit orders
  • FCA converted scrap corrugated material into sustainable packing and padding

Situation

Prior to engaging FCA, one customer with an international presence used multiple contract packagers to build parts boxes for its incoming supply network. Due to the high number of suppliers, this company experienced limited control over quality issues, little standardization in packaging design, and significant cost inefficiencies. Lead times averaged over 3 days.

Action

In an effort to lower its costs, standardize its supply base, and gain greater quality control over its packaging supply, this large manufacturer consolidated its incoming parts box production to FCA. FCA took over the packaging and manufactures the majority of parts boxes in the supplier network. FCA also manages the packaging order process for much of the supplier base.

Results

As a result of consolidating its supplier parts network, this customer was able to achieve higher accountability and consistency for all parts managed by FCA. Quality and consistency increased, and lead times were reduced. By offering this customer production-level pricing for single orders, FCA was also able to reduce this customer’s total cost.