Case Study — Automotive & OEM
Case Study: OEM JIT Milk Run for Automotive Assembly Line — Zero Stoppages in 36 Months
How SSL delivered zero automotive assembly line stoppages in 36 months — 22% freight cost reduction, 98% vendor compliance. OEM milk run JIT case study.
The Challenge
A major automotive OEM’s Jamshedpur commercial vehicle assembly plant was experiencing 2-3 assembly line stoppages per month due to component delivery failures. Their existing milk run operator was using market vehicles (not dedicated fleet), had no backup vehicle protocol, and communicated exception information by WhatsApp messages from drivers. Each line stoppage cost the OEM approximately ₹3-5 crore in lost production. Annual stoppage cost: ₹72-120 crore. The OEM’s supply chain director described the situation as ‘the single biggest risk to our production targets.’
The SSL Solution
SSL designed a complete inbound milk run system for the Jamshedpur plant: 8 dedicated milk run routes covering 47 vendor locations across a 120km radius, dedicated fleet ecosystem assigned exclusively to each route (no market vehicles, no reassignment), backup vehicle pre-positioned at the SSL Jamshedpur hub with 30-minute response SLA, GPS monitoring with real-time ETA updates to OEM production planning system, vendor window compliance tracking (vendors must be ready at SSL pickup time — failure triggers escalation within 5 minutes), and weekly route performance review with OEM and SSL operations teams.
Outcome
Zero assembly line stoppages in 36 consecutive months of SSL milk run operation. Inbound freight cost reduced by 22% versus the previous mixed-vendor model. Vendor window compliance improved from 71% to 98.4%. The OEM’s supply chain director cited SSL’s milk run as ‘the most significant supply chain risk reduction achievement in our Jamshedpur operations over the past decade.’ SSL has since been appointed as preferred logistics partner for the OEM’s Pune plant — where SSL is replicating the milk run design with 11 routes covering 62 vendors.
Why SSL Won This Engagement
The OEM had a non-negotiable requirement: zero tolerance for assembly line stoppage. SSL was selected not on price (SSL was not the lowest bid) but on capability to meet this requirement. SSL’s owned dedicated fleet — not market vehicles — and our pre-positioned backup vehicle protocol were the two features that differentiated SSL from all other bidders. The OEM’s procurement team spent 3 hours auditing SSL’s backup vehicle protocol before awarding the contract. Our willingness to contractually commit to the 30-minute backup response SLA, backed by a pre-positioned owned vehicle, was the deciding factor.
Questions About This Case
How did SSL solve Automotive & OEM logistics challenges?
SSL designed a complete inbound milk run system for the Jamshedpur plant: 8 dedicated milk run routes covering 47 vendor locations across a 120km radius, dedicated fleet ecosystem assigned exclusively … Contact SSL for a full case study discussion.
Can SSL do this for my company?
Yes. SSL has replicated similar solutions across 100+ enterprise clients. Contact corporatesales@sslpl.in or call +91-92978-78787 for a customised assessment within 48 hours.
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