Case Study – Expedited shipping put to the test – English
Case Study – Expedited shipping put to the test – English
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Expedited Shipping Put to the Test: An Auto Parts Assembly Line Versus Production Delays

Case Study
Slide 1

Expedited Shipping Put to the Test: An Auto Parts Assembly Line Versus Production Delays

Case Study

Experience and expertise guarantee freight delivery that won’t disrupt the production line.

Even now, as the global pandemic slows and the world reopens to full capacity operations, you don’t have to look far to find shipping delays.

An enormous auto parts manufacturer based in Mexico, our client manages an unusually complex and demanding supply chain that frequently ships specific car parts and materials to the Canadian auto assembly line.

They approached Vector seeking a simpler and more efficient freight operation due to increased shipping as the calls for more ZEVs (zero-emission vehicles) became louder. Inventories are a limiting factor, this translates to extremely tight shipping deadlines that cannot be delayed. Our client relies on efficient delivery of goods to ensure a solid production plan for their customers.

For companies in the automotive industry, even the smallest nut and bolt needs to be delivered on time for the rest of the forecasted production plan to be completed successfully.

Extremely Tight Deadline:
We needed to meet a strict deadline so the client would stay within contractual operations and the recipient would not experience any delays in production line assembly.

Guarantee of Freight Delivery:
This cargo had to be kept in pristine condition to ensure it would be usable for the Canadian assembly line.

Real-Time Management:
Everyone involved in the logistics solution required real-time updates on where the freight was and how quickly it would arrive at the designated location—within 24 hours.

When demand slows down delivery times and processes

Case Study – Expedited shipping put to the test – English

Our client has been experiencing a significant increase in demand throughout 2022, and the backlog of orders was starting to cause a slowdown in delivery times. Usually, this auto parts provider would rely on pre-scheduled land delivery for all their manufactured products. However, as more and more orders piled up from greater demand, the ability to continue meeting delivery times reached a dangerous limit—which would have compromised the Canadian assembly line.

The standard working model of our client is referred to as EXW (Ex Works: is one of the 11 current Incoterms), which means a negotiation occurs where the buyer agrees to pay for the transportation costs to receive their needed inventory. The supplier then works to ensure the product will be ready at a given time and space.

Anytime the seller cannot meet these needs, they must do everything possible to accommodate delivery.

Therefore, our client was facing the challenge of managing to get a set of auto parts to arrive safely at the Canadian assembly factory in less than 30 hours and, if possible, under 24 hours.

While this may seem easy given the solid highway system between Mexico and Canada, the margin for error was simply too small to risk. Between border crossings and other common road issues like breakdowns, weather, or accidents, it made more sense to seek a better-and faster-solution.

Working Together to Quickly Overcome an Automotive Part Manufacturers Logistic Challenges

Case Study – Expedited shipping put to the test – English

Our team of experts thrives on working with clients like this auto part manufacturer because it provides a problem to solve while ensuring a much-needed supply chain is supported.

The challenge here was to find a faster mode of delivery as well as ensure all the corresponding paperwork and permits were adequately addressed before leaving the facility in Mexico. While the Canadian endpoint wanted delivery under 30 hours, our client hoped for under 24 hours, and we thought this was a much better goal, too.

The efficiency by which the team at the Mexican parts supplier palletized and properly packaged their cargo was swift and professional. We worked closely with the local team to secure several transportation providers, ensuring the most cost-efficient option for our client to still meet their extremely tight deadline.

Vector’s priority is to only work with contractors and organizations that can provide real-time updates on projects. This allows everyone involved to have active tracking and updated info available whenever needed, and cuts down on potential delivery mishaps during transit.

Express service with a personal follow-up

Case Study – Expedited shipping put to the test – English

After the expedited plan was executed, the entire cargo was not only on Canadian soil but in the automaker’s facility in less than 24 hours, thanks to a charter flight combined with ground transportation.

Our team worked proactively and efficiently to ensure the cargo was delivered ahead of time and in perfect condition. We also provided hourly updates so our client knew where it was at any time and when it would arrive at its destination in Canada.

The result:

  • Successful completion of delivery within the tight deadline.
  • No interruption to production on the Canadian assembly line.
  • A continued commercial relationship between buyer and seller.
  • Pristine cargo, ready for assembly.
  • Avoidance of fines and regulatory roadblocks.

Client-Focused Logistics Services

At Vector, we are proud of the dedication and problem-solving of our capable team. This, combined with the strong partnership developed through every client interaction, is what creates desired results.

In the case of the Mexican auto part manufacturer, their ability to shift into a different mode in response to our suggestions led to a successful outcome. As they put it:

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Case Study – Expedited shipping put to the test – English

“Aside from saving our commercial relationship with the automaker, we had peace of mind throughout the entire process thanks to the way Vector responded. From our first request until the cargo arrived on time, we knew exactly what was happening and were sure it wouldn't fail.

And most importantly, Vector didn’t use this critical situation to charge us with overpriced fees. Everything was spot on. They even took the time to scout for the most cost-effective transportation agencies without sacrificing the mission.

It started with a one-time emergency, but now Vector has become our trusted logistic partner for years to come.”

Case Study – Expedited shipping put to the test – English
— Mexican Auto Part Manufacturer Logistics Manager

Let us find the solution to your problem. We will take care of your business like it was our own. Contact our team today to get started. When it comes to expedited shipping, there’s no time to waste!