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APAC region growth with a luxury automotive brand

3rd April 2024 | 2 min read

The Challenge

In 2022, the luxury automotive market share in the Asia-Pacific region amounted to 37.25%1. Projections indicate that this market in the APAC region will experience the most substantial growth between 2021 and 2026. By 2031, China is anticipated to emerge as the fastest-growing market for luxury cars, with an annual growth rate of 14%, consequently elevating its global share in the segment from 24% in 2021 to approximately 35% by the end of 20292.

A luxury automotive brand operates a network of over 138 dealerships throughout China. In 2023, Unipart Logistics won a competitive tender to operate the company’s marketing warehouse, covering the transportation and export business.

Our objective was to transfer over 5,000 SKUs from the existing supplier to Unipart while minimising the impact on dealers, improving the control of the transfer process to reduce discrepancies to the lowest level, and enhancing the digital and intelligent level of warehouse operations to improve operational efficiency.

The Solution

Unipart China assembled a project team comprising operations, digital, and safety experts. The following steps were taken:

  1. Optimal storage shelf design and layout were implemented to maximise space utilisation
  2. Within a week, an efficient transfer of the company’s goods was completed
  3. A dedicated Warehouse Management System (WMS) system was built locally for the project, enabling accurate storage location management, inbound and outbound process management, and transportation management to improve operational efficiency.
  4. After project delivery, standardised work and continuous operational improvements were executed, including real-time order and transportation status display, intelligent inbound and outbound processes, and customised reports.

The Impact

  • Rapid setup: Within half a month, all the installation of racking, network, equipment, warehouse facilities and CCTV was completed
  • Enhanced organisation: Materials were stored in a rational and orderly manner
  • Space optimisation: The overall warehouse usage area was reduced by 500㎡, a decrease of 20% from the original usage size
  • Workforce efficiency: The staff was reduced from 6 to 3, a decrease of 50%
  • Reduced discrepancies: When the transfer began, the inventory discrepancy reached 6.86%, and by the time of project delivery, we reduced it to 1.66%
  • Improved operational efficiency: After implementing digital operational management, the operational efficiency and intelligence level were significantly improved.

Unipart China’s collaboration with the luxury automotive brand resulted in a streamlined warehouse operation, marked by optimised space utilisation, reduced discrepancies, and enhanced digital capabilities. By leveraging expertise across operations and digital domains, Unipart delivered tangible improvements in efficiency and accuracy, ultimately benefitting the company’s supply chain and customer satisfaction levels.

If you have any questions regarding our offering in China, please contact Ada Chen at ada.chen@unipart.com.

References
1. Industry Research Biz – Global Luxury Car Market Professional Survey by Types, Applications, and Players, with Regional Growth Rate Analysis and Development Situation, from 2023 to 2028 – August 2023
2. Mingyu Guan, Jan-Christoph Köstring, Simon Middleton, and Timo Möller – Five trends shaping tomorrow’s luxury-car market – July 2022

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