With manufacturing facilities in Mexico, Chahta was forced to have a presence near the border to ensure timely crossing of raw materials as well as a distribution center to provide outbound services to their clients. Being in the automotive industry, Chahta is continually forced to provide cost reductions to their clients and were very cost conscious when seeking a provider to assist in their development.

Chahta’s largest client forced them to reduce their cost 5% over the next few years. In order to achieve its corporate goal of continually reducing logistics cost, it was vital for Chahta that the supply chain was working at optimum efficiency.

Faced with this challenge, Trans America Global decided to change the way in which Chahta’s supply chain functioned. Building on experience gained elsewhere within the global supply chain business, Trans America Global developed a warehouse in Tucson Arizona for inbound raw materials and outbound distribution. Therefore, instead of holding raw materials at a border cross-dock facility, all goods are shipped to the warehouse and inventoried and entered into the Chahta system as on-hand, allowing the visibility of product and reduced the transit time to manufacutuing by half.

Within this supply chain model, Chahta benefits from Trans America’s specialist services, including the extensive knowledge of trans border logistics. Trans America provides a 24 hour door to door service to and from Chahta facility in Mexico, and a full track and trace down to box level providing full visibility of the goods at all stages of the supply chain. A 98% service level agreement is also in place whereby Trans America incurs penalties if the agreed service level is not met.

The warehouse became operational in March 2002 and now handles all Chahta’s raw material handling and vendor relations. Lead times and logistics cost have been significantly reduced by 21% and an annual savings of 1 million dollars respectively to date.

Trans America Global strives to continually improve effieciency for Chahta and is currently aiming to reduce their logistics cost to less than 1% of turnover.

Siemens was forced by its clients to show a significant reduction in logistics services cost and reduce its transit times to plant. Siemens needed to reduce lead times from its vendors as well as have visibility of its raw material during transit.

Building on its world-class experiences, Trans America established proximity receiving facilities in Hartford Ct, Detroit MI and Chicago IL. These facilities service the regional suppliers on daily sweep trucks and consolidation services. By developing these proximity facilities Trans America has been able to provide the visibility Siemens requested as well as claims free transport of product via Trans America Global’s dedicated fleet.

Trans America has developed a business relationship with most of Siemens suppliers and is working directly with them to ensure compliance is met as per Siemens requirements.

Trans America’s proximity warehousing solution ensures continuously high service levels in the face of continually changing customer demand – and has made a significant contribution to productivity, efficiency and cost control at Siemens. For Siemens, Trans America has provided a dynamic solution for Siemens purchasing group. Developing expertise for other areas of the motor trade and utilizing global experiences to reduce space, time and costs.