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How GM saves $10 million

Containers that collapse for the return leg of the automakers' closed-loop distribution system are the secret.

By David Maloney, Senior Editor -- Modern Materials Handling, 10/1/2003

America runs on the automobile and the automobile runs on reliable replacement parts. To get parts to dealers quickly, ergonomically and cost effectively, General Motors has recently shifted to new metal containers. The collapsible containers save $10 million annually in shipping costs on the return leg of GM's closed distribution loop between parts plants and 16 distribution centers.

About 60,000 different parts are shipped in the custom-made containers (Topper Industrial, 800-529-0909). Parts that fit in the 48 x 45 x 33½ inch containers run from headlights to air filters to cigarette lighters.

The parts are either fabricated at GM's facilities or received from suppliers and loaded into the metal containers at the parts plants. They then ship to the DCs where workers pick directly from the containers to fill replacement parts orders for dealers. Drop down gates provide an easy reach for parts within. Workers can even step into the containers to obtain hard-to-reach parts. The gates were also designed to be removable and weigh less than 20 pounds to meet GM's ergonomic requirements. Care was additionally taken to eliminate pinch points that could cause injury.

"There has been a lot of thought that went into the design of the containers to make them safe and user friendly," says Terry Hoover, senior industrial engineer at GM.

The containers replace large wire baskets GM had previously used to ship parts through its distribution network. Most of these baskets measured 54 x 44 x 52 inches and were originally designed to fit in rail cars. As the company transitioned to over-the-road transportation, it found the wire baskets did not cube trailers well. They could only stack two high and were not collapsible, which made returning empties inefficient and costly.

The new containers stack three high for shipment. Once parts are emptied from them, the sidewalls collapse to flat for the return trip back to the parts plants.

"When collapsed, we could actually put more containers in the trailer than the weight capacities of the trailer could hold," explains Hoover. "Our payback for the containers comes from the return freight savings."

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