In 2013 at TRANSLOG SMR AMT Hungary an Indian owned company operating in Hungary, won the CEE Logistics and Supply Chain Excellence award in the industry category by developing a sophisticated direct distribution system. We asked Mr. Szabolcs Takács the Logistics and IT Director about the project which made them win the plaudits.
About SMR Auromotive
SMR Automotive Mirror Technology Hungary Bt., the largest operation of the global SMR Group, manufactures 35,000 automotive rear-view mirrors every day at its two production sites in Mosonmagyaróvár and Mosonszolnok, in the north-western part of Hungary (www.smr-automotive.com). The company’s world-standard products are assembled on 54 different assembly lines based on the requirements of German and Asian OEM customers (BMW, Mercedes, Audi, Opel, Porsche, Volkswagen, KIA, Hyundai). SMR Hungary is the largest automotive mirror factory in Europe, covering approximately 20% of the demand in Europe.
What were the major achievements after the project had been implemented?
The most important results of the MDL project: down time caused by missing material was reduced by 75 percent; the punctuality of deliveries increased by 15 percent; intermediate storage in our production units were decreased by 100 percent (eliminated), which freed up an area of 900-square-metre; the number of transfers and transactions decreased by 35 percent. As a result of these savings, the number of necessary material handlers decreased by 75, who could be employed in new projects. The number of leased forklifts was decreased by 3 commissioning machines.
How did the recognition help you to gain publicity?
As a result of our joint work, we have developed a system that is easy to use and applying the possibilities of modern technology at the same time. It has become a benchmark within the SMR Group, and the direct supply of assembly lines is planned to be implemented also at other Group’s production sites all over the world based on our system. The recognition is like an external authentication for the achievements, which helps us to promote our significant progress in logistics to customers, to the industry and to regional public authorities. But the award also helps in recruitment activities, as it underlines that SMR is an attractive employer with leading technologies and processes.
In your opinion how is the award supporting the developments of logistics in the CEE region?
Every award with such great interest and publicity as CEE’s Logistics Excellence Award has the potential to greatly support the concerned industry sectors; we at SMR think that CEE uses this option very well.
First of all the events are favourable occasions for learning about success stories, for relationship building and for knowledge interchange. Participants hardly could find a better forum in their immediate environment then at CEE conferences.
On the other hand you learn about the best examples for the successful implementation of new processes and large-scale projects, typically right at the end of the challenging first introduction steps. This provides “fresh” and useful information as guidance for your own process enhancement projects. Finally, this interchange also fosters competition, which at the end is the base for long term success of the concerned industries in the Central European region.
Which are the biggest challenges your department is currently facing? What type of new solutions or methods are you planning to introduce in your current and upcoming project?
We are continuously scanning our processes for possible fields of improvements; our internal logistics processes gained much of our Material Direct to Line project, now we focus on decreasing our purchased material’s days-on-hand and improving our customer deliveries.
For measuring days-on-hand we developed and implemented a global days-on-hand evaluating report. This report has proven to be completely reliable and is a great support for us defining the suppliers or item-groups where further decreasing of days-on-hand is possible without the risk of having material shortage. For improving our customer deliveries we also developed our own measures, this project is now in evaluation phase, we expect having results soon.
Besides above fields an in-house development of a comprehensive real-time logistics monitoring system is going on with aid of our local IT department. The aim of this Online Logistics Monitoring System is to deliver a reliable and easy to read overview about the general ‘health’ of any of SMR’s global site’s logistics processes.
Are you planning to apply for the award again in the future?
We have plenty of ideas, if any of these seem to be a good basis of a new project with a scale like MDL, we plan to again apply for the CEE award.