Integrated Logistics System
Hyundai Mobis Co., South Korea's leading auto parts producer, is improving the component supply system in Europe and North America so that Hyundai-Kia Motors customers in the regions can be provided with the parts they need just in time.
The company announced on November 17 that it has successfully set up a new supply system, which manages inventories at each distribution center based on the demand of customers in regions, for its automaking affiliates in Europe.
When there are too many stages of component supply systems, it takes longer to deliver parts and customers often fail to be provided just in time. Without accurate demand forecasts, the company will have to store excessive parts in advance, adversely affecting the efficiency in stock management. Currently, there are some 5.83 million European consumers who drive Hyundai or Kia vehicles.
The new system integrates order data from regions and distribution centers and monitors the overs and shorts of inventories. Based on the system, Hyundai Mobis can automatically supply locally produced parts to centers which has low inventory and transfer excessive stocks to other areas.
Moreover, the duration of time needed to deliver requested parts will be reduced by six days to seven from the current 13 days under the new comprehensive management system. It can also cut inventory holding periods by 20 percent as it doesn’t have to secure stocks in advance due to the automatic replenishment system.
Hyundai Mobis plans to establish the new system in Alabama of North America as well after it stabilizes the system in Europe.
The company recently completed the construction of its central distribution center with a total area of 56,000 square meters in Beringen, Belgium, and invited best overseas dealers to hold a conference to improve the service quality, making every effort to boost customer satisfaction for Hyundai-Kia Motors.