Automotive SKD Packaging

A Case study

Vehicles assembled in oversea markets are often shipped in SKD- or MKD-kits because:

.

  • It requires lower investment in facilities and complex tooling

  • Finished built cars are subject to a significantly higher import tax than auto parts unfit to drive

  • A lack of wide supplier base in the assembling country

  • It helps to develop local industry

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Semi knocked-down vehicles usually consist of a kit with a complete welded car body, coated and often pre-painted. SKD shipments can hold all parts required to assemble a full-functioning vehicle, or only key components such as the car body while smaller parts are localized in the market of assembly or shipped separately

Kar-Tainer provides returnable racking solutions which optimize the load factor, increase loading & unloading efficiency, and reduce waste on expandable packaging

A fictive case

A car manufacturer is assembling 12,000 vehicles yearly in a developing market; SKD vehicle bodies are shipped from the company’s home market to the assembly destination packed two units on wooden skids per 40 foot container, each skid weighing 250 KG; costing the company 250 USD. A high number of yearly truckload deliveries of the wooden skids are required at the plant, and in-plant workers spend much time on assembling the skids before car bodies can be loaded.

 

After loading the vehicle bodies in containers, containers are transported 200 km from plant to port in the home market before undertaking a sea journey of 14,000 km, and an inland delivery by truck of 900 km in the country of assembly, taking a total of 31 days at a cost of 2,200 USD.

 

The car manufacturer sets out to increase efficiency of loading while reducing cost and environmental impact through optimizing its method of shipping.

initial state

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Yearly Container Volume

6000

FEU SHIPPED

FROM ORIGIN TO DESTINATION

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Assembly Time

15

MINUTES

SPENT

ON EACH ASSEMBLED WOODEN SKID

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Delivery Clog-Up

600

YEARLY TRUCKLOADS

DELIVERING WOODEN SKIDS

Total Cost USD

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16.2

MILLION USD

2.4 MILLION PACKAGING COST

13.2 MILLION TRANSPORTATION COST

KAR-TAINER'S SOLUTION

By implementing Kar-Tainer’s SKD solution, the car manufacturer can increase loading capacity to 4 vehicle bodies per container, which reduces the number of outbound container shipments; limits the amount of incoming trucks delivering equipment and reduces assembly time compared to using wooden skids; eliminates expense on one-way packaging material; ultimately reducing overall cost and environmental footprint, while optimizing internal procedures.

NEW REALITY

Reduction in Container Volume

3273

FEU SHIPPED

OVERALL

3000 OUTBOUND CONTAINERS

273 RETURNING EMPTY EQUIPMENT

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45.5% REDUCTION 

IN CONTAINERS SHIPPED

11.322 TON

CO2 EMISSION REDUCED

Elimination of Expendables

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YEARLY TONNAGE

CANCELATION OF

WOODEN MATERIAL

3000

ONLY 273 DELIVERIES

OF PACKAGING EQUIPMENT PER YEAR

ENOUG WOODEN WASTE

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TO MAKE UP

4.3 TIMES

THE WEIGHT OF CHRIST THE REDEEMER IN RIO DE JANEIRO

54.5%

REDUCTION OF

INBOUND DELIVERIES

Increased Operative Efficiency

EQUIPMENT ASSEMBLY

TIME REDUCED TO

3 MINUTES

IN-PLANT LOGISTICS PROCEDURES GREATLY

IMPROVED DUE TO EASE OF HANDLING

Cost Reduction

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YEARLY REDUCTION IN

TRANSPORTATION COST

6 MILLION USD

SUBSTITUTION OF EXPENDABLE WOODEN

PACKAGING SETUP FOR RETURNABLE STEEL SOLUTION

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DIRECT REDUCITON IN

EFFECTIVE WORKING HOURS

2400

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OVERALL COST

REDUCTION

46.2%

EQUAL TO 624 USD ON 

EACH ASSEMBLED VEHICLE

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