Case Study
The automotive supplier roadmap that increased inventory accuracy by 63%
Solution
Opportunity
Customer
Tier one automotive supplier bringing transmission and powertrain components to the largest OEM assembly lines.
Customer Profile
Providing some of the world’s largest automotive manufacturers with parts is a massive operation. But coming out of the COVID-19 pandemic, which caused disruptions across overseas suppliers, a tier one automotive supplier was struggling. A growing list of projects and limited resources made it increasingly difficult for the company to manage its transmission and powertrain components inventory. These challenges also slowed deliveries to the original equipment manufacturers (OEMs) that needed them.
Additionally, the supplier lacked real-time visibility across operations. Their current Enterprise Resource Planning (ERP) system couldn’t provide the material status visibility they needed, causing inaccuracies across multiple warehouses and departments. The supplier lacked a clear picture of what inventory they had, where it was, and when OEMs needed their shipments, slowing operations and delivery times and leaving customers in the dark.
As a result, the supplier faced a backlog of 2.5 million units, while maintaining an on-hand inventory value of $71 million. Their inventory was also impacted off-site, with only a 32% warehouse inventory accuracy rate. These issues further strained their shipping department, which had a throughput of 56,500 units, over 2.4 million less than their inventory backlog.
While the company had the capability and tools to address these issues, its team lacked the capacity. By partnering with Uber Freight’s Consulting team, the company could better understand its data, inventory, and material status to gain visibility and control over its projects and improve operations.
Opportunity: Gaining control and visibility over inventory
The main objective for the six-month partnership was to develop and execute a continuous improvement roadmap that would rework the company’s inventory and shipping operations, driving visibility and control, and optimizing their facilities.
To begin, Uber Freight’s Consulting team created a vision, mission, and operating principles to align leadership and guide the transformation. The team also engaged key stakeholders to develop a consolidated project list, encompassing 60 active projects from five different departments. By organizing and prioritizing projects through PICK—priority, impact, cost, and knowledge—principles, Uber Freight helped the supplier improve project management and execution, enabling the company to focus on higher value work that meets business objectives.
Once a project structure and ground rules were established, Uber Freight addressed the supplier’s immediate need for visibility to get their inventory under control through warehouse facility and optimization planning. To manage and correct their inventory, Uber Freight facilitated the standardization of the supplier's operating procedures, shipment schedules, and rules, allowing the customer to implement these improvements for better inventory control and customer communication.
The Consulting team also worked closely with the company, giving them tools so they could establish better process flow and transparency through warehouse and facility optimization planning. With Plan-Do-Check-Act (PDCA) cycles, the company utilized network data and business objectives to continually improve and create more dynamic operations. As they reached goals, replaced manual flows, and understood the movements of materials, they began to gain more control and visibility.
Solution: A roadmap to drive efficiency and control
To learn more about how Uber Freight Consulting can optimize your supply chain network, connect with an expert today.
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Results
Industry
Automotive
Size
600+ employees
Solution: End-to-end transportation management
Blue Bird needed a logistics partner they could trust—one that would provide both enhanced insights and opportunities to reduce costs. After frustration with their previous provider, they turned to Uber Freight for a smarter, more reliable solution.
With Uber Freight’s end-to-end Transportation Management System (TMS), Blue Bird gained the visibility they were missing across their entire supply chain. The all-in-one platform allows them to plan, execute, and manage shipments seamlessly across different modes and regions. Thanks to real-time tracking with MacroPoint, they always know exactly where their shipments are at the load level—no more guessing or hidden costs.
Sophisticated data analysis by Uber Freight’s transportation experts has enabled Blue Bird to access optimization insights that have transformed their operations. This dedicated team has helped Blue Bird centralize their procurement management, execution, business intelligence, and call-ahead standardization, driving continuous improvement and maximizing their supply chain performance.
“Before, I didn’t have access to my data and now I have access and visibility to the information I need,” Holland says. “Any reports I want to see, I’m able to get those quickly. If there’s anything I can’t find, my operations team jumps right in and gets those to me. They’re always in the weeds every day, getting our loads to execute.”
With this holistic approach, Blue Bird can ensure materials arrive on time, keeping production lines moving and avoiding delays — which can be particularly costly in the automotive sector. Uber Freight helped Blue Bird take control of their entire supply chain, including Ocean and Air freight.
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Results: Significant improvements in inventory management
Through Uber Freight’s guidance, the company has seen significant improvements in inventory and materials management, as well as shipment operations, including:
• 39% improvement in backlog units
• 15% improvement in shipping throughput
• 63% improvement in warehouse inventory accuracy
These improvements have also led the company to reinstate its in-house continuous improvement team and execute the remaining items in the roadmap, ensuring stronger and more sustainable operations.
Results: Significant improvements in inventory management
