Logistics costs reduction thanks to SmartBin 
Jin Hon Chia, Key Account Manager, Bossard Pte. Ltd, Singapore



Since 2014, we have been working with our customer, a leading service provider for public transportation in Singapore, to solve some of their technical issues. One such example is the application of a self-locking fastener on their rail components. Existing solutions then were not working well. Through our strong technical support and the cooperation of our technical experts, we were able to conclusively test and prove to the customer that our solution was able to resolve their technical issues. 

Process analysis
We also analyzed our customer’s current processes and recognized a need to streamline their approach on the supply of fasteners. How did we do this? Customer requirements were split into three tiers. The first were general fasteners which they ordered on a regular basis, the second were fasteners they utilized for rolling stock overhauls on their shop floor and the third were fasteners which they ordered on an ad-hoc basis. For the first tier of fasteners, we worked with our customer to set up a frame agreement in order to streamline the ordering process. For the second tier, we analyzed their processes and suggested the SmartBin automatic logistics system to manage the monitoring and delivery of these fasteners. For the third tier, we are working with the customer to set up an online electronic catalog which will help handle any future requirements for ad-hoc fasteners.

Flexibility through a suitable logistics system
Unlike manufacturing operations, the challenge of the MRO business is that part lists change constantly depending on the rolling stock being serviced. With this in mind, we developed a logistics concept to include reserve capacities that could support customer’s flexible requirements. After introducing them to the suitable customer logistics system, we identified redundancies and bottlenecks, proposed process improvements, and used Total Cost of Ownership (TCO) calculations to quantify the cost savings of these recommendations. Based on this, our customer is expected to massively reduce logistics costs after the introduction of the SmartBin in their workshop.

Through the process walkthrough conducted for the customer, we were able to identify and reduce inefficiencies by eliminating the need to source, inspect, count and kit several hundred fasteners. This clearly showed our customer the benefits of the joint analysis process and productivity improvements resulting from the introduction of our logistics system.

For our customer, Bossard has grown from a supplier to a strategic partner and we look forward to replicating this success for other transport service providers.



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