Huddersfield logistics firm SCALA gas partnered with Fortune Global 500 firm Sinomach for a joint business venture in its native China.
Sinomach (China National Machinery Industry Corporation) said the relationship with SCALA had “significantly improved” its service levels and reduced huge logistics costs
Sinomach invited SCALA and its joint venture business in China, Ocean Supply Chain Group, to provide a comprehensive supply chain solution to thoroughly solve all supply chain issues and improve service levels.
Previously, it had used three different suppliers to transport goods from its factory in Zhejiang province in Eastern China to GM-Wuling Automobile in Liuzhou city in south-west China, which proved costly and inefficient.
SCALA investigated Sinomach’s various processes and analysed issues in each to develop a brand-new operation system for the company.
This included integrating cargos from other customers on the same transport routes to greatly reduce transportation costs - enabling larger load sizes and replacing 9.6 metre trucks with much more efficient 17.5 metre trucks.
Sinomach’s warehouse in Liuzhou city was replaced with a SCALA Ocean warehouse, close to GM-Wuling Automobile’s factory, to improve the efficiency of receiving and dispatching goods. It also introduced green packaging to reduce costs.
Andy Yang, consultant at SCALA China, said: “Companies such as Sinomach now recognise that integrated supply chain solutions for transportation, packaging and warehousing can achieve remarkable results in improving service, distribution, sustainability, inventory accuracy and reducing logistics costs.
“Sinomach needed a simple, results-oriented, practical and efficient integrated process to achieve the goal of high efficiency and low logistics costs.
“We were able to provide that.”