The second entry for the Automotive Logistics Awards has been shortlisted in the category “Supply chain partnership award”.
A big challenge to solve…
The initial problem was the cost of taxes for imports of new vehicles in Malaysia, 40% tax for each imported vehicle.
Our objective was to receive and dismantle the vehicles and send them as spare parts to the destination country. We had to coordinate all inbound and outbound flows for activities by controlling quality, track and trace and IT. One challenge was that only batches of spare parts equivalent to 12 cars could be imported into Malaysia. Another challenge was that the flows are different for each model of car (4 in total), since the parts are not the same.
The flows operated by GEFCO were as follows: recovery of finished vehicles in the customer’s factories, transport by road to the GEFCO platform in Le Havre (France) . Once in the platform: Vehicle reception, plant entry, quality control, vehicle storage, dismantling, container storage and shipping. The expedition was by road to Le Havre (France) and by boat to the Naza factory in Malaysia.
GEFCO solution and implementation
Main steps of the project were:
- Bidding process
- Industrialization
- Production planning and management of Inbound (reception) and Outbound (shipping) flows
- Defining a packaging process and implement quality standards for inbound, production and outbound.
- Creation of different parcels depending on the vehicle model.
- Recovering of all the information concerning spare parts (photos, dimensions…) in order to design the packaging for each type of part.
- Sleds creation for the hulls of cars.
All vehicles were traced with a kitching system. We managed to successfully complete this project with our dedicated project team: project leader, planner, packaging technician, dismantling technician, quality manager and safety manager; with the operational team.
A great result & Return on Investment
This project was a success for our client, they received a customized solution. After five months of stopping operations, due to the problem with taxes in Malaysia, thanks to GEFCO services, they restarted their activity in only six weeks.
250 vehicles were transported each month to Malaysia. Our client also added more models of vehicles, after the activity showed success. For GEFCO it was also a gain, because we implemented a new activity in our offer, dedicated to the customer, and we can now propose it to all our customers. It allows our teams to work closely and to prove that the value of our brand, Infinite Proximity succeeds.
SOURCE: GEFCO
