Transforming Supply Chain Resilience – Interiors/Exteriors

Background:

 
A Tier 1 automotive supplier of interior and exterior components in Mexico faced major operational constraints. Internal material shortages disrupted production schedules, while unclear client-vendor cost responsibilities and logistics inefficiencies further compounded issues. High freight costs and excess inventory added financial strain.

To address these challenges, XO Solutions deployed a team to assess supply chain risks, optimize logistics, and enhance shop floor efficiency. Warehouse visualization and material flow plans were redesigned to support operational stability.

Key Business Issues:​

• Internal material shortages disrupted production schedules
• Unclear client-vendor cost responsibilities created financial and logistical challenges
• High freight costs and excess inventory strained financial performance
• Warehouse visualization and shop floor material flow plans were redesigned to improve efficiency and stability

Key Results:

• Increased manufacturing throughput, enabling higher production output
• Improved shipping efficiency, sustaining a higher volume of parts shipped weekly
• Significantly reduced past due orders, improving on-time delivery performance
• Minimized expedited freight costs, optimizing logistics and reducing financial strain
• Reorganized shop floor layout, enhancing material flow and visibility
• Strengthened supply chain stability, mitigating risks and improving vendor collaboration

 
XO Solutions delivered measurable improvements, ensuring sustainable operational efficiency and a resilient supply chain.