Comprehensive Component Management Is the Key to Efficient Production SUUS and White Drive Motors and Steering Collaboration

For White Drive Motors and Steering, a global manufacturer of hydraulic motors and control blocks, one of the most crucial elements of business development is the efficient delivery of components to the factory. To meet these challenges, we rely on the Customer Managed Inventory service and project coordination in the Control Tower model. Why?

Customer Managed Inventory

As part of the CMI, White manages the inventory of components and raw materials for production, which are stored in a bonded warehouse (at SUUS's Wroclaw warehouse) located a short distance from the factory. White optimizes the costs related to stock financing by using the stock according to its needs, withdrawing from the bonded warehouse only the goods necessary for the current production. Payment is not made until the goods are moved from the bonded warehouse to White's own warehouse. Until then, the components remain the property of their manufacturers. In addition, because the goods are stored in a bonded warehouse, duties and taxes are deferred until the goods are removed. As you can see, CMI enables both production optimization and effective financial cash management.

Control Tower

Supply chain management at White Drive Motors and Steering requires:

• coordination of the work of many internal operational departments, including the customs agency, contract logistics, and road freight,
• collaboration with numerous business partners involved in the process, such as White, component manufacturers, carriers, and customs and tax administration,
• control of information flow and document exchange.
  Therefore, the logistics processes at White are managed by a dedicated team of specialists within the Control Tower model. This team gathers information, selects optimal solutions based on that information, and communicates with White and other business partners. This approach allows for quick responses to changes in the supply chain, minimizes risks, and capitalizes on business opportunities.

In the White project, we provide:

• Collection of goods at ports in Gdańsk, Gdynia, and Hamburg, and their transportation by both less-than-truckload (LTL) and full-truckload (FTL) road freight to the bonded warehouse in Wrocław;
• Customs clearance services for goods imported from India and China;
• Full warehouse services, including receipt and release of goods, storage in the bonded warehouse, and labeling;
• Real-time stock updates, allowing for optimal management of production plans;
• Full-truckload and less-than-truckload transportation of components from the bonded warehouse to the White factory as needed;
• System integration between SUUS, White, and component manufacturers, enabling efficient information flow and automation of notifications, receipt, and release of goods;
• A dedicated team of specialists within the Control Tower model, managing the entire supply chain.

White Drive Motors and Steering's Opinion on the Collaboration

White Drive Motors and Steering has relied on a supply chain based on a bonded warehouse for years. This is a reliable system that ensures timely delivery of goods for production while optimizing inventory financing costs. Our market experience has shown us how reliable a partner Rohlig SUUS Logistics is. The quality of the services provided goes beyond mere service; it is true customer care.

The Control Tower ensures that every element of the supply chain is a strong link. From the introduction of goods into the bonded warehouse, through their storage, customs clearance, and release, to transportation to our factory, everything runs smoothly according to strictly followed processes. System integration allows for the automatic flow of goods with minimal human involvement.

Recently, we have managed to partially expand our collaboration in the next link of the supply chain, namely sea freight, which is currently handled by the component manufacturers. This arrangement allows Rohlig SUUS Logistics to take full responsibility under one tracking system for the entire flow of materials, from the manufacturer to White's production line.

We wish ourselves and Rohlig SUUS continued fruitful cooperation.

Tomasz Bała, Indirect Sourcing Project Manager, White Drive Motors and Steering Sp. z o.o.