Automotive Component Handling: The global way

December 4, 2013 9:40 am

“CHEP has redefined the way automotive components are handled through the supply chain. Automotive manufacturers and their suppliers collaborate to create a seamless eco-system based on CHEP returnable packaging solutions,” explains DK Rai, Head Auto Sales, CHEP India
CHEP automotive supply chain solutionsThe CHEP automotive supply chain solutions are specifically designed for inbound component logistics. The solution is based on the concept of total crate management (TCM) which is outsourcing of designing, development and management of reusable packaging CHEP. Vehicle manufacturers and their tier suppliers convert all packaging within their supply chain to high-quality, ready-to-use, and reusable packaging which is owned and managed by the service provider. In managing, the packaging, and the cleaning, conditioning and on-time delivery are handled as well.
TCM is also built around the concept of equipment pooling which is the shared use of standard equipment by multiple customers. The outer crate is standardised to achieve optimum results while transportation and handling, yet internally customisable by placing low-cost durable component specific insert which can be reused throughout the life cycle of the auto component. These crates move seamlessly from the point of production at the tier-1 or tier-2 manufacturer to the OEM assembly line.
Benefits of TCMTCM is successful because it delivers value through reduced overall supply chain managed packaging costs to the industry while providing on-time delivery of reusable packaging, resulting in a better quality component being delivered to the line. TCM standardises all crates and pallet footprints throughout the industry. The benefits are shared by each business participating in the end-to-end supply chain, be it, the component supplier or the vehicle manufacturer.
As the component moves from the point of production to the point of consumption in standard packaging, space saving and labour reduction are visible as no decanting is required along the supply chain nor is there a need for separate storage area for each supplier at the OEM location. Reusable packaging also reduces damage, especially during monsoon the warehouses and eliminating the removal of unwanted waste and the space and labour required. Standardised solutions can facilitate international logistics, not just local and national. All this leads to a positive impact on the environment. This model follows the 5s methodology.
Built around the proven cost efficiencies of pallet and plastic crate pooling, TCM will be a game changer for the automotive logistics industry in India.
Unlocking valueThe various operational challenges faced by an organisation actually are opportunities to value creation. This value can be generated through automation, collaboration and standardisation based equipment pooling, creating a dynamic, agile, sustainable and scalable supply chain. CHEP, with their talent pool of supply chain experts, work closely with the customers, to help unlock value from your operations. These experts study the upstream as well as the downstream supply lines creating an opportunity to collaborate within the eco-system to enable seamless flow of goods right from the supplier location to the point of consumption.
The Value Creation MatrixThe value created is shared by each and every participant in the returnable packaging pool. These world-class solutions are available on pay-as-you-use basis, tailor made to suit the cyclical automotive business.
Today, CHEP is a catalyst of change, driving industry collaboration though their thought leadership initiatives.  Many prestigious industry forums invite CHEP to speak about global automotive component handling solutions based on global best practices to help modernize the Indian automotive industry.   These award winning solutions together with the combined efforts of CHEP and their customers are helping build better supply chains together.
Author-DK Rai, Head Auto Sales, CHEP IndiaCHEP is a member of the Australian-based $6 billion Brambles Group. Brambles is the world’s leading provider of pallet and container pooling  based supply chain solutions through CHEP and IFCO, and a leading provider of information management solutions through Recall. Brambles employ more than 17,000 people in over 50 countries. Founded in Australia in 1945, CHEP provides solutions for the aerospace, automotive, chemical, consumer goods, fresh food and manufacturing industries. CHEP launched in India in early 2008 and boast of leading industries in the target markets in FMCG, auto, 3PL and retail as customers.