Just-in-time solutions

Just-in-time solutions support production operations to remain more efficient, cost effective and customer responsive. Look at some of the key developments in this service which are  becoming crucial to a wide range of industries. Namrata More… Logistics companies are coming up with customised solutions that allow manufacturers to synchronise with suppliers in support of production line […]

Just-in-time solutions
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Just-in-time solutions support production operations to remain more efficient, cost effective and customer responsive. Look at some of the key developments in this service which are becoming crucial to a wide range of industries. Namrata More…

Logistics companies are coming up with customised solutions that allow manufacturers to synchronise with suppliers in support of production line demand. “We see growing demand for 3PLs to provide just-in-time (JIT) solutions in Asia as land costs increase and retail outlet rental costs continue to rise in major cities across Asia,” said Amit Dhingra, director operations at Menlo Logistics. Menlo provides a range of JIT solutions across multiple industries. “In India we have a strong presence in the automotive industry providing time-critical components to assembly lines and spare parts to distributors.”

Menlo Logistics expanded its automotive logistics operations in India, moving to a new after-sales spare parts facility in Dharuhera, near New Delhi in Haryana state. The 3,846-square-meter facility is managed on behalf of a global brand-named client and is situated in an original equipment manufacturers (OEM) cluster including Manesar, Neemrana, Bhiwadi, Bawal and Dharuhera. The facility is well connected to the highway network and has easy access to Delhi International Airport which is 66 kilometres away.

In India, Menlo also has a presence in the medical equipment sector providing hospitals and medical centres with a broad range of equipment essential to the care, treatment and well being of patients. The food and beverage sector is also one of the various verticals where Menlo provides its JIT expertise. In Thailand Menlo provides daily replenishment of a range of fresh produce, as well as chilled and frozen products, delivering to over 100 stores across Bangkok as a major global brand.

“Pressure is building to reduce inventory levels particularly in the luxury brands and F&B sectors, this will provide greater opportunities for 3PLs like Menlo to expand its business,” added Dhingra. With a growing demand from customers to reduce their own inventory levels and maximise production or retail space, Menlo has developed a highly effective system called Lean, to deliver a range of time critical solutions across the supply chain.

Lean is a process that produces material savings that flow directly to their bottom lines. By understanding customers’ changing requirements, Lean develops innovative strategies for shortening lead times and reducing costs. Menlo’s Lean process starts with Value Stream Mapping (VSM), a tool used to establish customer’s goals. Then, Lean as a process can help optimise the supply chain by reducing inventory. A global engine manufacturer needed a Lean-focused 3PL that could seamlessly warehouse and ship its complex, SKU-intensive inventory of products and parts. The chosen supply chain provider had to demonstrate ingenuity and an unwavering commitment to continuous improvement. Applying a two-way exchange of Lean concepts, Menlo has generated a multitude of kaizens (the practice of continuous improvement) for the customer — many of which were innovations developed by line employees.

Earlier this year, UTi Worldwide and Changjiu Logistics, an independent automotive logistics company in China, came together in a strategic partnership. The partnership between UTi and Changjiu Logistics will serve the logistics requirements of global automotive OEMs and suppliers in the booming automotive market in China. “We are very excited about this partnership,” said Ed Feitzinger, UTi CEO. “Our clients are very interested in what UTi and Changjiu Logistics can do together and we are committed to make this a successful partnership.” He also noted that UTi and Changjiu Logistics possess complementary strengths and many cultural similarities, especially a focus on client service, which will enable their joint success. Bo Shijiu, board chairman, Changjiu Logistics, said, “The partnership with UTi will give Changjiu the strength to develop international business with multiple-modal transport service as well as to enrich client bases and company comprehensive capability.”

Ditlev Blicher, UTi president, freight forwarding, said, “Our strategy is to develop an inland transportation system for both component milk-run and finished-goods deliveries utilizing UTi’s solutions and best practices and Changjiu Logistics’ strong trucking and warehousing capability in key automotive manufacturing and industrial centres in China. These areas offer a critical mass of Auto clients for OEM/Tier 1 and Tier 2 and are key clusters for UTi and Changjiu Logistics to focus on together.” Blicher added that three areas of joint development are planned: railway solutions between Europe and China, VMI/production logistics for automotive OEMs and Tier 1s, and aftermarket parts and accessories distribution.

CEVA Logistics announced the launch of TireCity in Italy. The hub, which covers an area of 50,000 sq m. is strategically located in Somaglia, in the province of Lodi, and is fully dedicated to the warehousing, handling and cross docking of products in the tire sector.

TireCity, is the fourth sector-specific hub to open in Italy. CEVA believes that the future of supply chains in Italy is focused on a collaborative approach: sharing infrastructures, networks, people and processes through sector-focused multi user hubs, enabling customers to face market fluctuations, benefit from savings and receive high service levels. “We have decided to create a new sector-focused multi-user hub dedicated to the tire sector, to continue to drive additional value for leading companies in this market, both existing and future customers,” said Giuseppe Chiellino, CEVA’s managing director, Italy.

“This hub is also the beginning of a strategic course of growth in the automotive sector in Italy that starts from tires as a key and vital element for vehicles such as cars, motorcycles and industrial and agricultural vehicles,” Chiellino stated. “In the current economic climate, CEVA’s collaborative approach can be an opportunity for innovative processes, improving supply chain responsiveness to meet user demand and reducing costs.” He added.
“The launch of TireCity reinforces CEVA’s leading presence in the Italian logistics market and accelerates our growth in the tire and automotive sector, by offering distinctive and unique logistics solutions, customized for single category of products,” said Alberto Scagnetti, Vice President, Contract Logistics General Manager for CEVA in Italy. “Thanks to our operations excellence approach and relentless focus on impeccable standards, CEVA will be able to further invest in technology, competence and people, in order to meet the increasingly sophisticated needs of our tire customers and ensure efficiency and speed throughout the entire supply chain,” he added.

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