Kitting Case Study

Porsche Cars North America

Based in Atlanta, GA, Porsche Cars North America, Inc. is a subsidiary of Stuttgart’s Porsche AG, and is the exclusive U.S. importer of Porsche automobiles. Since its establishment in 1984 its approximately 400 employees provide parts, service, marketing and training for more than 200 U.S. dealers.

Challenge

Each new Porsche arriving at a U.S. port receives a custom-kitted vehicle wallet containing manuals and up to eight additional pieces of model-specific information. Once the vehicle is inspected and all documentation completed it is then delivered to the dealer.

In 2014, Porsche’s sales increased by 22 percent over the previous year. Normally a cause for celebration, this growth amplified Porsche’s dissatisfaction with their previous kitting vendor, whose turnaround time and wallet kitting accuracy failed to meet brand standards. Facing costly scheduling and production delays of the vehicle wallets, mismanaged wallet inventory, and misshipment problems, Porsche decided to find a new partner.

Solution

The All Points implementation team visited the Porsche port authority team in Brunswick, Georgia, as part of a comprehensive review of the existing kitting process. Analysis included production methods, scheduling, inventory management, implementation of content updates, and timing wallet arrival at the port to meet incoming vessels. Other notable aspects of the program improvement included how communication was coordinated from Porsche’s supplier base, the origination of the vessel file, and the Porsche support center team. On a regular basis, business reviews were conducted to discuss current business conditions and emphasize continuous improvement in the workflow.

Impact

Porsche saw a dramatic improvement in delivery of their vehicle wallets to the ports. Major cost savings were realized in reducing inventory levels, freight, improved quality control, and internal labor overhead. Moreover, the time from when the vessel file was issued to the arrival date was nearly halved. Recovering both cost and time meant Porsche employees could return to focusing on what they do best: producing and selling world-class vehicles.

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Reduction in
kitting program cost

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Reduction of
time required to deliver