Automotive SKD Packaging
A Case study
Vehicles assembled in oversea markets are often shipped in SKD- or MKD-kits because:
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It requires lower investment in facilities and complex tooling
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Finished built cars are subject to a significantly higher import tax than auto parts unfit to drive
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A lack of wide supplier base in the assembling country
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It helps to develop local industry
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
Yearly Container Volume
6000
FEU SHIPPED
FROM ORIGIN TO DESTINATION
Assembly Time
15
MINUTES
SPENT
ON EACH ASSEMBLED WOODEN SKID
Delivery Clog-Up
600
YEARLY TRUCKLOADS
DELIVERING WOODEN SKIDS
Total Cost USD
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
45.5% REDUCTION
IN CONTAINERS SHIPPED
11.322 TON
CO2 EMISSION REDUCED
Elimination of Expendables
YEARLY TONNAGE
CANCELATION OF
WOODEN MATERIAL
3000
ONLY 273 DELIVERIES
OF PACKAGING EQUIPMENT PER YEAR
ENOUG WOODEN WASTE
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
DIRECT REDUCITON IN
EFFECTIVE WORKING HOURS
2400
Cost Reduction
YEARLY REDUCTION IN
TRANSPORTATION COST
6 MILLION USD
SUBSTITUTION OF EXPENDABLE WOODEN
PACKAGING SETUP FOR RETURNABLE STEEL SOLUTION
OVERALL COST
REDUCTION
46.2%
EQUAL TO 624 USD ON
EACH ASSEMBLED VEHICLE
