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External Warehousing & Kitting Support During Peak Volume

External Warehousing & Kitting Support During Peak Volume

Project Overview

Summary

A Tier 1 automotive supplier facing a sustained production surge needed additional storage and kitting capacity without disrupting its active plant. OpTech Automotive established an off-site operation that combined inventory staging, component kitting, quality verification, and scheduled delivery—helping the supplier maintain a 99.6% on-time shipment rate throughout peak volume.
“OpTech gave us the additional capacity we needed without adding congestion inside our plant. Their off-site team maintained kit accuracy, kept shipments on schedule, and scaled with our production requirements throughout the peak-volume period.”
Supply Chain Manager, Tier 1 Automotive Supplier
Region
Southeast United States
Metric
On-Time Shipment Rate
The Challenge

The Problem Faced

A sharp increase in OEM demand pushed the supplier’s existing facility beyond its practical storage and labor capacity. Incoming components were competing with production activity for floor space, while internal teams struggled to prepare complete kits quickly enough to support the accelerated schedule.

The added volume increased overtime, material congestion, and the risk of incomplete or incorrect kits reaching production. With limited room to expand inside the plant, the supplier needed an external operation that could come online quickly and function as a reliable extension of its existing workflow.

Approach

How We Solved It

OpTech deployed an off-site warehousing and kitting program near the supplier’s facility. The operation received and staged inbound components, maintained inventory by part number and production requirement, and prepared kits according to the client’s bill of materials and release schedule.

Dedicated teams worked from standardized instructions at clearly organized kitting cells. Barcode scans and documented quality checks confirmed part numbers, quantities, and kit completeness before release. Exceptions—including shortages, damaged material, and specification discrepancies—were isolated and escalated before they could affect production.

OpTech also established scheduled replenishment routes between the warehouse and the client’s plant. Staffing levels, shift coverage, and delivery frequency were adjusted alongside production demand, allowing the program to absorb changing volumes without requiring the client to recruit and manage an additional temporary workforce.

Outcomes

Results Delivered

The off-site program achieved a 99.6% on-time shipment rate during the peak production period. Kit accuracy remained above 99.8%, and no production interruptions were attributed to missing or incorrectly prepared components.

Moving storage and preparation work off-site freed valuable floor space inside the supplier’s facility and reduced congestion around production areas. Standardized work and scan-based verification also lowered the number of last-minute corrections and emergency material movements.

The supplier met the OEM’s increased schedule without constructing additional space or making permanent additions to internal headcount. As demand changed, OpTech scaled labor and delivery frequency to match the production plan, providing the capacity of an expanded operation without the long-term overhead.