ZF Lemforder UK choose Rudolph & Hellmann Automotive for activity based cost manufacturing logistics
31st March 2012
Growth is the driving reason for change, Purchasing Manager & SCP Manager ZFUK, Paul Miller tells us why...
“With JLR’s ambitious expansion plans and the recent announcement from Toyota to build new Auris here in the UK, there are enormous opportunities. If we are to step up our production capability, the logistics operation needs to be flexible and performance related. Activity based cost is becoming the ZF Lemforder corporate standard and is commonplace across our German operations.”
Activity based cost is the only response to this steep increase without risk
“With 12 months to run on the current contract, I was given the challenge of securing a contract with a 3pl provider who would work based on an activity based cost. Although this is standard practice across the automotive industry in Germany it doesn’t appear to be common in the UK. My counterparts in Germany provided me with the framework to draw up the RFQ and I approached the UK’s leading on site 3pl providers.”
Only three 3pl’s responded to the ‘activity based cost’ contract opportunity
“One 3pl initially said they could do it and then changed their mind at the second round. A second 3pl provided a cost, which was a significant increase, even when based on our current activity levels. Only Rudolph and Hellmann Automotive could provide a true activity based cost solution. “
R&HA were willing to share the risk and drive performance improvement
“With only 9 weeks to run on the existing contract there was a lot to do in a short period. The biggest concern was to ensure that the switch of 3pl providers didn’t disrupt our production or impact on our customers. The TUPE implications with the transfer of staff added to the complexity of the switch over. The Rudolph and Hellmann Automotive implementation team gave us confidence, they were sensitive in every dealing with the people being TUPE’d over and the communication was excellent. Clear, concise, highly detailed but to the point.”
The switch couldn’t have gone better or been easier
“During the period prior to the switchover, during the switchover itself, and in the eight weeks since I have had very little cause for concern. Everything has been as I would have hoped, if not better. The improvements are coming through as Rudolph and Hellmann Automotive focus in on specific KPI’s to continually drive out inefficiencies. Every week we have a meeting to share information, identify a focus for improvement and review KPI’s.”
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.