Honda has appointed Yusen Logistics as sole provider for inbound parts collection for its Swindon plant, which makes the Civic, CRV and Jazz.
The appointment follows a competitive tendering process and almost doubles Yusen’s current business with Honda of the UK Manufacturing. Honda expects significant synergies from consolidation of its inbound operations.
The service provides collection from 59 UK suppliers and operates more than 500 routes a week. Each route includes collection of components and the return of packaging.
In line with Honda’s production schedule, the frequency of routes varies between single weekly collections, up to 25 timeslots per day depending on the supplier.
Richard Marlow, department manager external logistics at Honda of the UK Manufacturing, said: “We awarded the business to Yusen Logistics because of their proactive approach to continuous improvement and cost reduction through kaizen programmes, their best-in-class IT systems and their proven operational performance over the past five years.
“Their flexibility of approach during periods of disrupted production due to the recession and other exceptional circumstances has also been critical in supporting our business. YL’s outstanding contribution to our business was officially recognised at our recent Supplier Convention, where they were presented with a Supplier Award for Outstanding Contribution to the Honda account.”
The contract is now fully operational and Honda and Yusen are focusing on further efficiency improvements, including programmes to reduce fuel consumption, improve planning efficiencies, reduce turnaround time at suppliers and help reduce the environmental impact of the plant’s supply chain.