Penske And An Automotive Supply Chain Customer


Founded in 1915, this company's products are recognized the world over by leading vehicle manufacturers, and are used across many markets including bus, refuse, fire, construction, distribution, military and special applications.

To support its growth in Asian markets by late fall 2008, the company determined it would need to more effectively manage the aftermarket service parts re-ordering and inventory replenishment at its repair facilities. The company selected Penske for its abilities in navigating complex intercontinental logistics systems.

Working collaboratively, the two were able to address the company's needs in both China and at its headquarters in the US, where Penske helped manage replenishment, product quality, customer service and sales support.

Customer's Challenges

  • Replenishing automotive aftermarket parts across the Asia-Pacific region
  • Managing an accurate inventory of over 4,000 product SKUs
  • Managing orders for over 30 end-users throughout the Asia-Pacific region
  • Supporting sales to local customers
  • Coordinating multiple freight forwarders and carriers for on-time delivery to regional markets
  • Handling a full range of customer service activities, including order entry, credit check, transportation, and order follow-up

Penske's Automotive Supply Chain Solutions

  • Distribution Center Management (DCM) and International Transportation Management (ITM) including:
  • Coordination / construction of a new facility
  • Warehousing, management and stocking of over 4,000 SKUs
  • Inbound / outbound handling of shipments
  • Pick, pack, ship and value-added operations
  • Locally-sourced dedicated rack and shelf system
  • Customer account credit review
  • Associate training in customer products
  • Management of transportation carriers for delivery
  • Anti-rust and quality control for over 500 SKUs
  • Layout, strategies and placement
  • Customized documentation and reporting
  • Warehouse Management System with EDI connection to the company's SAP system in the US

Results Delivered

Working closely with the customer's planning team in the US, Penske helped solve a number of key business issues. While managing inventory with 99.95% accuracy, Penske and the customer increased the company's internal order fill rate from 82% to nearly 92%, increased productivity by 27% and fostered an order increase of 23% year-over-year with 100% outbound accuracy.

Penske works alongside the company's customers and its freight forwarders to determine how to best ship products to its customers' locations. Customs and export documents are prepared for shipments. On an order-by-order basis, Penske determines whether to ship the product same-day or consolidate orders with others to reduce the company's distribution costs.

Overall, Penske has exceeded the customer's key performance indicator (KPI) in receiving putaway time, order fulfillment processing, order line delivery accuracy, shipped goods condition and goods labeling accuracy.

Penske now serves as the 'face' of this company to its more than over 30 customers throughout the Asia-Pacific region, accepting orders, pick-pack-shipping products and providing follow-up customer service and sales support.