Gkn Brazil Case Study

Case: GKN Brazil

Case explains activities carried out by GKN Brazil, an auto parts company, leader in manufacturing of sideshaft parts to Brazilian automotive markets. It shows actual stages of reverse operations to collect, evaluate, stock and transportation of parts that are remanufactured at the industrial unit responsible by the fulfillment of almost totality of this Brazilian market. Also it points out the specifics procedures took place at this industrial unit, from the movements, production processes, quality tests and fulfillment of international certifications and standards until the distribution to sale points at the domestic market.

This case study shows the problems faced by cradle-to-cradle product life cycle. Recovering used components

Remanufacturing process at GKN: All workers can do all the tasks mentioned above and each process was carried out in single workstation. Large amout of amnual work was requied to carry out above activities.

Various components received from demanufacturers are store ate facility in GKN. Oncce the inspection is done next step is chemical cleaning. Once chemical cleaning is done parts are manually washed, grease and dirt is cleaned using ‘Green detergents’. Next step is surface recovery in which fissures and scratches are removed using grinding machine.

Inspection using magnaflux is carried out in next step, each component is checked for remainder fissures and structural problems. Next activity is carried out at assembly station where new components are added in the recycled parts and then final product is then packed in a paperbox having lable ‘GKN Manugactured’.

Conclusion of case:

For GKN the first motivation to go for reverse logistics was legal issues but as they worked towards improving the logistics that revsulted in improvement in safety image of the company and market recognition and elimination of accidents occurred because of the use of irregular second hand components. GKN now has national and international accreditions which reflects companies commintments towards quality and reverse logistics and

Product processing (including transportation)

2. Repair and refurbishment

3. Liquidation

4. Returns management systems

A best practice is to keep reveres logistics separate from forward distribution activities. So that they can have right amount of executive focus. This will ensure that reverse logistics will get the reqired focus it deserves while empowering executive to oversee the process to ensure success.

3rd Party Logistics Benefits:

Companies often outsource reverse logistics to third party logistics providers even though companies have top notch supply chain functions and complex networks. Reasons they go for 3rd party logitics are: aquiring reverese logistics expertise qickly, for greater flexibility and faster speed to market, and creating a protective barrier against outside forces to limit potential liabilities.

Many companies choose to opt for outsourcing as they don’t have enough expertise in their management or they just want to concentrate on manufacturing and customer care. They allocate their best talents to run the manufacturing plant, working with clients or managing imports, often returns area is neglected. From 3PL provider they get what they are missing- focus,capital resources, existing technology, experience and