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Cost Benefits Analysis of Container Tracking for the Automotive Supply Chain

January 28, 2020

Published by: Center for Automotive Research

Ann Arbor, MI

Clients can expect to see positive results from the implementation of the Surgere Solution which creates supply chain visibility with 99.9% data accuracy.
Surgere is a leading automotive software company. This research, conducted independently by the Center for Automotive Research (CAR), in their first annual CAR Report, showcases the benefits of the Surgere Solution for original equipment manufacturers (OEMs) and suppliers in the automotive industry.

2,000 components and 30,000 parts

Managing the automotive supply chain is no easy task. From the concept of a vehicle to the finished product, the system in which OEMs and their suppliers operate is a complex environment. Managing an inventory with thousands of pieces and parts that comprise a finished vehicle is both a head-scratching and daunting job for many participants in the supply chain.

If keeping track of all the individual products wasn’t enough, supply chain professionals must also manage the containers in which those items are shipped, transported and delivered. These returnable containers are used for long-term storage as well as multiple trips between manufacturers. They protect the product, reduce waste and cut production costs.

$1m – $14m Total System Loss

Even though returnable containers are widely used across the supply chain, they can create their own set of problems which hurt OEMs bottom line and add to the pandemonium experienced by supply chain professionals. Losing these containers due to tracking error or theft are common problems reported by companies who participated in the CAR research. These losses increase labor costs and delay shipments.

The Surgere Solution solves this universal problem by employing various science-based technologies, with a focus on radio-frequency identification (RFID), to track these containers and simplify the supply chain. This implementation of technology results in unprecedented 99.9% data accuracy and when fully implemented, an automotive OEM can expect to see a positive ROI within the first full year of using the Surgere Solution.

Savings by the Million

With the mass adoption of the Surgere Solution, OEMs can save hundreds of thousands –or millions – of dollars compared to the cost of finding and replacing lost returnable containers on an annual basis. Assuming a company-wide RFID container tracking solution is implemented, OEMs will see immediate results that directly impact their bottom line.

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