Case Study

OUR SUCCESSFUL IMPLEMENTATION OF COST SAVING MEASURES FOR OUR AUTOMOTIVE CUSTOMERS

An automotive component manufacturer based in Shah Alam, Selangor, operates a secondary plant in Alor Gajah, Melaka to complete its production process for a major car manufacturer. To improve service levels and ensure on-time delivery for synchronized production, we conducted a comprehensive analysis of route efficiency and pricing.

By optimizing transportation routes and implementing a cost-effective logistics solution, we successfully enhanced delivery reliability while reducing overall costs. This strategic approach enabled the customer to streamline their supply chain and support just-in-time manufacturing requirements.

MODIFICATION ON 40FT HQ TRUCK (SA TO AG – PU)

Standard HQ - 18 racks
With modification - 36 racks (internal dim 9ft 6 inches)
100% value added savings
Managed to achieve 4 trips per day
Direct cost savings
Monthly rate of RM 35,000 per month/ 26 days/ 4 trips per day = RM 336.55 per trip + RM 203.88 (fuel) + RM 60.80 (toll) = RM 601.24,
Trip basis RM 985.00 per round trip Savings of 38.96% per month
This includes empty racks return

5 UNITS OF 5 TON TRUCKS (ADIENT AG TO HONDA)

Standard 5 tons – 4 racks
With modification – 6 to 7 racks (varies according to model)
Reduced 100% rental from previous contractor
Further reduced 15% in 2015
Another reduction of 12% in 2017
Support system well versed with Honda production process and stocks availability

FOR SHORT HAUL TRUCKS E.G. PROTON SHAH ALAM AND ALOR GAJAH

Volvo savings

SUPPORT SYSTEM

24/7 – 365 days, we support your deliveries even on public holidays or middle of the night especially for Ad-Hoc and critical situation
SOS express delivery using 4 wheel drive to back up critical
Supervisors are positioned at all stations to monitor and coordinate to support the synchronize delivery
Long haul trucks are mostly less than 5 years old, short hauls are less than 10 years old. We continue to replace when required
Continuous meetings with customer to resolve any existing or potential issues in relation to operations and cost