After transitioning most of its sourcing to Asia, this automotive products company found itself lacking in strategy. Find out how Tompkins helped this leading brand not only develop a smart Asian logistics and sourcing strategy, but also a detailed roadmap for implementation.
The company is a recognized global brand leader in the production, distribution, and selling of original automotive equipment, parts, accessories, and general merchandise.
The company had recently moved much (but not all) of its sourcing to Asia. Its parts/accessories and general merchandise product lines were particularly challenged by increasing costs, lead-times, and complexities of the international logistics strategy. The company needed to improve its Asian sourcing and logistics strategy, as well as its roadmap for implementation.
Tompkins International's Role
- Tompkins was engaged to assess the company’s “AS-IS” situation, and plan and facilitate a senior-level event to discuss the options and decide on the preferred path forward (“TO-BE”). This included a review of total costs, lead-times, and customer service issues and challenges.
- The assessment of options included total costs (landed and delivered), product flows (categories), lead-times by logistics segment, duties, inventories, and customer service impacts.
- Tompkins reviewed and assessed options for logistics consolidation, identified critical success factors, determined the appropriate criteria for deciding on the best solution, and designed a two-day special workshop event to develop the preferred solution.
- The special workshop event was successful, and the company now has a roadmap for action to implement the preferred Asian Consolidation Center (ACC). Implementation of the ACC is proceeding.
- The roadmap contains nine tasks that include: total cost model for planning and estimating, supplier selection, service provider (LSP) selection, stock-keeping units (SKUs) for pilot test, IT system needs, adapt distribution center practices to the ACC, performance, and change management.