The customer is an auto parts company in Xiangyang City, Hubei Province. It began project cooperation with Perkins in the UK in 2017, mainly selling pulley products. However, since 2020, due to the huge fluctuations in the shipping market, and the chaos within the company's internal supply chain, not only the customer's order volume dropped by 15%, but the profit margin also declined.

Yuexin's digital supply chain management helped the customer by its comprehensive solutions.

Fully Diagnose and Discover the Problem


Through Yuexin's comprehensive diagnosis

Identify four issues that affect costs and profits


01
There are as many as 50 product models with many specifications and models, and the inner packaging is not uniform, with as many as 15 kinds of inner packaging.
02
Due to the large number of models and inconsistent demand for various models, it is difficult to accurately judge overseas demand, resulting in haphazard delivery plans and maintaining overseas inventory based on 12 weeks, resulting in redundant overseas warehousing and tying up funds.
03
The shipping form is basically based on the LCL mode. Due to the company's system requirements, the shipping and warehousing businesses are split and handed over to different suppliers respectively. This increases the unpacking process at the destination port of the LCL company, resulting in the increment of logistic links and the high logistics cost.
04
Due to internal management problems in the factory, there is a bias between the production department and the logistics department, and the logistics rhythm cannot match the delivery frequency, resulting in a low single delivery cost but a high overall cost.

To solve the above issues

Yuexin optimized and upgraded the customer's logistics supply chain

In view of the problem of too many types of inner packaging, we made calculation improvements and unified the original 15 kinds of inner packaging into one type. After the improvement, we implanted the FAM front-end management system customized and developed by Yuexin to realize sorting, Integrated work on documents.


After Yuexin optimization:


  • Reduced the purchase cost of inner packaging;
  • Reduced the error rate of picking and improved picking efficiency;
  • Improved cargo loading rate;
  • Optimized the logistics management personnel process and combined it with Yuexin's FAM automatic cargo picking and ordering system.It realized process integration and greatly reduced the difficulty of management logistics personnel.

Through Yuexin's comprehensive diagnosis and overall optimization, we helped customers save logistics costs of US$5,000 per month, reduced occupied funds by US$20,000, and shortened the response cycle by at least 10 days.

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