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Noise Reduction Automotive Tier-1 Supplier

Since January 2019 we have been supporting our client, an Automotive Tier-1 supplier, who manufactures different noise reduction parts, using different technologies, to improve their logistics procedures, since they had huge amount of overdue invoices from OEM’s due to mistakes during shipping.

The Challenge

Company requested our support since they were having problems getting paid for overdue invoices, but at the same time were getting charged for
logistics issues, they assumed this was caused for ASN’s problems.

We have been supporting our client by providing support in the following activities:
I. Determinate Overdue Invoices root-cause: Analyze and getting evidence of each shipment and ASN transmission
II. Getting information of claims received: Looking with their customers for detailed information on charges received
III. ERP issues: Identify problems related with bad or poor parameters set up at system
IV. Improving shipping process: ASN’s transmission, Labelling and paperwork managed properly
V. Reducing Expedite Freights: Several charges received due to expedited freights to customers, that were not managed properly
VI. Recognizing other modes of failure: Not only ASN’s were causing problems, more than 50% of the issues were related to other logistics matters

AMBE helped to quickly identity and visualize the main issues, providing support by performing or coordinating the improvement of these.

The Solution

Determinate and keeping record of every logistics problem related with their customers that might cause a penalty or and overdue invoice

  • Database generated with every logistic issue related with customers
  • Measuring and analyzing each topic to take decisions on improvements
  • Coordinating several changes on ERP (SAP) with IT area, based on Germany
  • Analyzing Releases received by customers in order to avoid undershipments
  • Implementing strategies to avoid quantity discrepancies on shipments
  • Double verifications when shipping to catch mislabeling
  • Integrate other company areas on improvement process as IT, Quality & Finance
  • Helping to negotiating with OEM’s payment of overdue invoices
  • Supporting on new projects launch to avoid having same logistics issues

The Result

Communication

Before

Poor communication between plant and customers regarding claims and noncomplying actions

After

Logistics and Quality departments contact customers to understand and dispute, if possible, each claim
Shipments information

Before

ASN’s not being submitted properly, lack of documentation, packaging information missing, mislabeling

After

ASN’s being sent and confirmed by system, packaging information updated before shipments and label information validated
Internal Information Management

Before

In the best of the cases, each department was working on their issues, without working integrating the activities of the rest of the company

After

Consolidated information for all the company, each department have access to the same databases and charts, as well working on the same objectives together
Costs

Before

740 K USD A year & or more overdue invoices 268 K USD Customer Charges for ASN issues on 2019 38 K USD ASN Third-Party ASN service per year

After

99 K USD A year or more overdue invoices 2.8 K USD Customer Charges for ASN issues first 2020 semester 4 K USD ASN Third-Party ASN service per year
With more than 100 team members in the US and response teams available globally, we are an award winning ISO 9001:2015, dual-certified W/MBE diverse supplier that brings expertise you can count on and outcomes you can measure.
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