Supply chain transformation saves $1M
Leading Japanese auto parts manufacturer saves $1M annually by eliminating missed delivery penalties after supply chain transformation
A leading Japanese manufacturer of automotive parts and tires, recognized globally for its high-quality production standards and wide distribution network. The client partnered with HCLTech to address supply chain inefficiencies and modernize its operations through advanced technologies and process automation.
The Objective
The client asked HCLTech to transform its supply chain landscape by:
- Reducing operational costs and penalties through process optimization
- Streamlining order fulfillment, warehouse management and logistics
- Leveraging advanced analytics for accurate and timely demand forecasting
The Challenge
The client faced several operational challenges that impacted efficiency and profitability:
- Manual, error-prone and time-consuming processes resulting in high costs and penalties
- Poor synchronization between production, warehouse and shipment schedules
- Limited ability to forecast demand accurately, creating supply chain inefficiencies
The Solution
HCLTech implemented a comprehensive digital transformation program, enabling end-to-end visibility and smarter operations:
- RFID-based tracking for real-time monitoring of shipments and inventory
- Supply chain modernization to streamline warehouse and logistics processes
- Advanced analytics platform to drive accurate demand forecasting
- Automation and AI integration to reduce manual intervention and minimize errors
- End-to-end system integration to enhance customer experience and operational visibility
The Impact
The engagement delivered measurable outcomes aligned with industry benchmarks:
- ~10% improvement in On-Time In-Full (OTIF) delivery for both production and aftermarket orders
- $1M+ annual savings by eliminating penalties for missed deliveries
- $2M+ cost avoidance through process simplification and efficiency gains
- Significant improvement in logistics and warehouse productivity, ensuring scalable global operations
