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Problem:Each of the Big Three auto assemblers were experiencing excess inventory carrying costs, high inland container and trucking costs, heavy plant congestion, inefficient material flow, and high ocean carrier demurrage costs at their Valencia, Venezuela assembly plants. The Crowley Solution:Dedicated trucking with inland container yard dispatch. Crowley invested in the necessary infrastructure in Venezuela to provide modern trucking equipment, and a state-of-the-art, secure, ISO-certified, container yard near the assembly plants. This enabled the containers holding imported CKD assembly parts to be staged within minutes of the plant and be ready for delivery on short notice. Ocean carrier demurrage was eliminated, containers were delivered in window times to eliminate congestion at plant receiving, port-to-plant transportation costs were reduced significantly, theft and shrinkage was eliminated, and material flow improved. Result:Clients plant no longer suffered from container storage clutter. Material was received only when needed, but was still nearby for quick retrieval. Congestion, demurrage, and inventory management problems were effectively eliminated. |
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