Hollingsworth assisted a leading automotive manufacturer with an unexpected surge with strategic negotiations and savvy adjustments to inventory management.
One of the Big 3 automotive manufacturing brands recently underwent a major, unexpected spike in inbound deliveries to their 3PL supplier’s plant. Normally this additional business would be welcome, however this facility was already at full capacity and didn’t have the space to accommodate the additional inventory. They were very concerned that the overload would cause a severe backup and disruption within their supply and distribution network.
With proven results for effective inventory management, Hollingsworth was able to provide this customer with a number of strategies to solve this fulfillment predicament.
To address their customer’s capacity problem, Hollingsworth’s first step was to engaged in negotiations with the plant’s landlord. Hollingsworth was able to acquire additional temporary space in the building to enable the customer to keep up with their increased inbound activity. In addition to adding the additional space, Hollingsworth’s creative storage solutions included:
- Consolidation of existing inventory to optimize warehousing capacity
- De-contenting of products and packaging to increase density and maximize warehouse floor space. This resulted in being able to have multiple parts on a pallet instead of one part per pallet.
- Inventory and material flow analysis to design and implement a racking program that allowed for flexibility to handle more products
This combination of coordinating additional space with optimization of the customer’s existing inventory management enabled them to take on additional business at a reduced cost. Hollingsworth’s expertise in full-service fulfillment solutions was the key to this leading automotive brand’s success in solving a significant inventory management challenge.