Project: Efficient Just In Time (JIT) Supply Chain Management - Nissan Motor Manufacturing (UK) Ltd

Reference: GPCS 374

Last update: 08/04/2010 10:27:37

Objectives

In order to compete effectively in the UK and world export markets, Nissan needs the ability to produce vehicles at minimal costs whilst retaining the production flexibility and quality control necessary to maintain its market position. Effective supply chain management is critical to achieving these objectives.

Description

Nissan recognised that there were significant opportunities for load consolidation as well as the potential for further reductions in inventory levels. A remote consolidation scheme, based in the Midlands was therefore piloted with Ryder Integrated Logistics during 1990/91. This scheme was not solely restricted to transport planning: every aspect of the supply chain was considered with the intention of eliminating or reducing waste packaging, storage space, unpacking time, line transfer etc. The fully integrated logistics scheme combined the management and operation of all these elements of the supply chain within one single logistical management activity.

Contractor(s)

AEA Technology Environment
Harwell Business Centre, Didcot, Oxfordshire, OX11 0QJ
+44 (0)1235 432201

Contract details

Cost to the Department: £12,000.00

Actual start date: 01 April 1998

Actual completion date: 01 January 1999

Publication(s)

Good Practice Case Study 374
Author: Energy Efficiency Best Practice programme
Publication date: 01/12/1998
£0.00
Source: Energy Efficiency Best Practice programme
More information: http://www.transportenergy.org.uk/downloads/GPCS374.pdf

Summary of results

  1. The logistics scheme has significantly reduced:

    (a) The car component stockholding and stock handling activities at the Nissan site. Inventory has been reduced from 2.5 to 0.7 days' supply since the scheme was implemented,

    (b) The quantity of fuel consumed by multiple JIT supplier deliveries,

    (c) The total number of vehicle movements and vehicle miles travelled.