Sound system adds value in automotive supply chain

Reducing unnecessary product handling and improving security THOSE FORTUNATE enough to own the luxurious new Ford Focus and Mazda 3 Series have the added benefit of factory-fitted autosound. Behind the scenes, supply chain initiatives contribute to making their listening experience outstanding. The local office of Sumitomo Corporation - which represents Sanyo Automedia globally for OEM (Original Equipment Manufacturer) supply - supplies Ford Motor Company in Silverton with around 30 000 Mazda and Ford radios per year. These are delivered on a Just-In-Time (JIT) basis in accordance with the factory’s requirements, eliminating the need to hold inventory and contributing to streamlined output. A significant proportion of the Ford Focus production is exported to Australia with the radios fitted, underscoring the global nature of modern business. “Our partnership with Clover Cargo International makes this a seamless operation,” says Sumitomo Corporation’s Iain Johnstone. “Their agent - JLS Logistics - collects the radios from the manufacturer in Malaysia. They are carefully packed, containerised and shipped via Durban to the Clover Cargo bonded warehouse in Aeroport. Clover Cargo monitors the shipment in transit and takes care of all Customs and other requirements.” It is at this stage that Clover Cargo adds value to the operation by extending further into the supply chain. “Meeting the stringent global quality standards of Ford and Mazda means that the radios have to be in perfect working order for fitment,” says Johnstone. “It is essential that a detailed Pre-Delivery Inspection (PDI) be carried out on every unit after its lengthy journey across the world.” The solution was found by including the PDI as another stage in the supply chain. Sumitomo installed the necessary high-tech equipment in the Clover Cargo secure bonded warehouse and flew in experts to train Clover Cargo’s supply chain people in the PDI technical and reporting procedures. The advantages of the initiative are numerous, he added. It removes additional steps from the supply-chain, thus reducing unnecessary product handling and improving security. "Ford Motor Company has the reassurance of knowing that every unit is in perfect working order and can be fitted with the utmost confidence. " An individual report is produced on every single unit for the manufacturer in Malaysia and head office in Japan, as required by their quality management systems. Plus Sumitomo Corporation is able to concentrate on its core business activities instead of becoming involved in the logistics detail.