Case of the Costly Changeovers
How much does it cost to change a production line?
Well, more than warehousing at Ohio Logistics.
One Ohio Logistics customer proved that it was less expensive to warehouse its product than to make numerous costly changes to its production line.
This company makes plastic bottles - nearly 2,500 different types of bottles. After each and every order, the company would stop the production line and change the tooling to meet the new order specifications. With the value of each individual bottle worth only a penny or two, profit margins are very slim and cost-cutting measures had to be explored.
The company decided to experiment. Partnering with Ohio Logistics, the company decided to make larger production runs of each type of bottle and to make the costly production changeovers only on weekends. The additional bottles are transported to Ohio Logistics, which now also handles final distribution for the company.
It took the company just three months to prove the value of the new inventory and distribution system. Today the company is adding new capacity, as well as new customers, as it continues to grow.
"Yes, we need your product, but no, please don't send it directly to us."
That's what two automotive suppliers are saying when they use Ohio Logistics to receive large containers arriving from overseas destinations.
Ohio Logistics, which is located in Foreign Trade Zone #151, breaks down the incoming containers, separates items by part number, spot inspects the product, verifies quantities, updates inventories and, when necessary, sends parts out to coders. Ohio Logistics then delivers the parts to its customers "just-in-time" and in the right quantity.
The customers receive both the advantages of the Foreign Trade Zone and the convenience of on-time delivery, which can usually only be provided by a domestic supplier.
Wouldn't you like to focus on just what you do best?
Indeed, Third Party Logistics enables companies to concentrate on what they do best -- design and manufacture a quality product. Ohio Logistics provides a cost-effective way to bring raw materials to the factory floor and to distribute the product to customers domestically or around the world.
One consumer electronics manufacturer uses the full scope of Ohio Logistics capabilities.
Ohio Logistics accepts most of the raw materials for the company and suppliers own the raw materials until it is shipped to the production line. Raw materials are delivered to the assembly lines on time and in the proper quantities.
Once the product is completed, Ohio Logistics transports it back to its warehouse. It then distributes the product, either in its own trucks or by other commercial transportation, to the electronics manufacturer’s customers.
Case of Foreign Fortunes
Unfortunately, many manufacturers tend to avoid foreign affairs altogether.
In today’s just-in-time manufacturing environment, many companies avoid foreign suppliers even when quality and cost make these foreign parts highly desirable.
One appliance manufacturer uses Ohio Logistics to overcome the problems of distance.
Suppliers ship their parts to Ohio Logistics where the parts are unpacked, inventoried and made ready for the customer. Suppliers maintain ownership of their parts in the Foreign Trade Zone until Ohio Logistics ships the part on time and in the proper quantity to the customer.
Actually the suppliers are the "real customers" of Ohio Logistics, but the appliance manufacturer is the beneficiary of the association.
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