Automotive Component Handling: The global way

By admin December 4, 2013 9:40 am IST

“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.

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