| Business Case: Crossdocking in automotive |
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A Crossdock Management System was implemented in the supply chain of an Italian car manufacturer as part of an improvement program. The supply chain objectives were to reduce the warehousing costs and delivery lead times, and to streamline the replenishment cycles. The CMS plans and controls the (de)consolidation of automotive components on their way from suppliers to the manufacturing sites. In the cross dock centres, shipments can be sorted immediately or be stored temporarily before outbound shipping. Since the CMS is able to align the inbound and outbound flows seamlessly, a significant reduction in lead time has been realised. The combination of shipment orders has led to an increased product availability in the manufacturing sites to over 95%. With the help of the CMS, the stock levels can now be replenished on a daily instead of a weekly basis. The case shows the benefits of flowing supply chains and the strengths of the CMS in the MPO Supply Chain Suite.
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