Cost savings and recovery of 10,000 square feet of manufacturing space.
A Tier 1 automotive supplier faced a supply chain dilemma. It sourced international material in bulk to keep costs down, but then stored the material in a manufacturing area that was already tight for space.
The client asked UTS for a JIT solution that would deliver smaller quantities on a more frequent basis. However, this would increase sourcing costs more than 20%.
UTS took a different approach and built a strategic plan to hold the material at a third-party warehouse instead.
Result: Our solution trimmed $8,400 of direct costs and recovered 10,000 square feet of manufacturing space. In addition, UTS gives the client full visibility of its warehouse inventory and in/out activity.