Rudolph and Hellmann Automotive assists 1st tier Automotive manufacturer with implementation of customs bonded store ‘On-plant’

2nd May 2016

Rudolph and Hellmann Automotive assists 1st tier Automotive manufacturer with implementation of customs bonded store ‘On-plant’

When a leading 1st Tier Automotive Manufacturer had a requirement to assess the benefits and applicability of implementing a bonded store in support of its inbound raw materials process, it turned to it’s Lead Logistics Service Provider, Rudolph and Hellmann Automotive for assistance in the project scope, management, costing and implementation.

As many world class 1st tier Automotive manufacturers strive to provide the most cost effective solutions to it’s OEM Customers, the supply-chain is always under scrutiny to assess options that can deliver cost savings and cost efficiencies. Considering that many 2nd tier suppliers operate outside the EU, many 1st tier and OEM Manufacturers can still obtain benefits from importing raw material from them, despite additional logistics costs - providing these costs are fully optimised on a regular basis.

The benefits of utilising custom bonded stores as part of the inbound process is an obvious choice, as the suspension of tax duty can deliver substantial cash-flow benefits to both manufacturer and and OEM end users, however off-site bonded warehouses can be expensive as a solution, adding complexity to the supply-chain. Rudolph and Hellmann Automotive and it’s world class 1st tier customer decided to explore the opportunities to operate a bonded store within its factory, integrating the custom bonded operation into Rudolph and Hellmann Automotive’s already established Inbound ‘on-plant’ logistics service.

Utilising resource from the Development and operations team and partners, R&HA were able to quickly plan and develop a solution that would utilise current on-site space to operate a customs bonded store, negating the need for an off-site solution. Working alongside it’s number of approved suppliers and experts, the development team were able to plan and cost every last detail for the store, including additional security equipment, segregation fencing, revised storage profiles, MHE, Unloading solutions and software requirements. The team also supported it’s customer by applying for all necessary certifications to operate the completed bond store, which included the compilation of all customs bond processes and necessary software requirements.

The whole Customs bond store project is anticipated to go-live within the current operation by July 2106 and the operating saving going forward over the next 5 years is estimated to be in the excess of 10% in comparison to an off-site solution, ensuring competiveness for the 1st tier supplier and it’s OEM Customers.

Here’s how the 360 onsite logistics audit and assessment works!

Put us to the test, what have you got to lose?

Contact us for a FREE ‘on site' logistics audit – carried out under a non disclosure agreement - our findings will be reported in full confidence and will provide a detailed analysis of where savings and improvements can be made.

_{There’s only one condition - you must be UK based and be operating in the automotive sector, with a head count of around 25 - 30 or more operating in logistics roles.}