Business Challenge
As a global leader in designing, manufacturing, and marketing automotive products for original equipment and aftermarket customers, this customer faced significant challenges managing its vast inventory across multiple locations while ensuring timely and accurate order fulfillment. With more than 200 manufacturing facilities and R&D centers, packaging was being procured independently at the plant level, lacking a centralized purchasing program or compliance oversight. This decentralized approach led to inefficiencies across the supply chain, frequent disruptions, and even production line shutdowns, underscoring the urgent need for a unified and standardized packaging solution.
Solution
With a strong need to standardize its corrugated and packaging supply process, the customer required a centralized purchasing program to ensure compliance and save time by consolidating orders with a single source instead of managing hundreds of packaging suppliers. With over 65% of the client’s packaging requiring customization, Network adopted a hands-on approach by auditing all on-site customer facilities and implementing solution-driven, cost-saving initiatives.
By partnering with a single vendor, the customer successfully streamlined order management across its facilities, resulting in savings through SKU consolidation and centralized reporting. Additionally, Network provided local stocking and same-day delivery, freeing up valuable production floor space at the customer’s facilities.
Results
Since taking advantage of Network’s solutions, the customer has realized several benefits:
- 20% average cost savings
- Consolidated 3,200+ packaging SKUs
- Streamlined deliveries and improved efficiency
- Strengthened their relationship with an established, reliable distributor
The centralized approach has streamlined our packaging process, reducing costs and complexity across our facilities. Network’s customized solutions have made a real impact on our efficiency.
About Network Distribution
Network Distribution® (Network) is a global distribution organization supported by the power of local expertise. We work with customers to create and manage supply programs that ensure facilities have the products they need to generate business success.
