Mercedes AMG High Performance Powertrains Case Study by Unipart Security Solutions
21st October 2015
Background Mercedes AMG High Performance Powertrains is a highly successful innovator in Formula 1 motor sport.
Mercedes is driven to promote the Mercedes Benz brand by being the world leader in the design and manufacture of high performance Powertrains. Mercedes defined the term world leader by winning F1 Grand Prix races through technology leadership, race reliability and a strong and motivated team. Business Need Following significant stock losses during 2012, Mercedes HPE consciously took a decision to review their Goods In and Out operations. During the review it became apparent that Mercedes had neither the processes or security expertise to deliver a secure and robust parts management operation. Having provided a quality manned guarding operation for two years, Mercedes engaged with Unipart Security Solutions Limited to assess whether Unipart's capabilities in Logistics, could be blended with current operations in order to take on the Goods In and Out functions. The primary objective of this process was to engage a service provider capable of delivering a high-end, secure stock control operation, with the clear objectives of reducing stock losses and improving efficiencies. Critical to the success of this approach was the appointment of a contractor who could tailor a security solution which could be quickly adapted, based on the needs of the business and whose results could be measured by outcomes not activities. The Unipart Solution Utilising the skills of security management colleagues within Unipart Logistics facilities, a mobilisation team was brought together that carried out detailed risk assessments and site surveys. Following this a comprehensive task schedule was compiled, which was primarily focused on developing robust operational processes centred around stock placement and location management. Following a stringent and industry compliant screening process two Goods In and Out operatives were initially recruited. Additionally, a number of fully trained and screened relief staff were trained in the Goods processes to facilitate annual leave, sickness and additional coverage requests. Having recruited a team of operatives and allocated dedicated relief personnel a training program was introduced for all team members, which included process, procedures, SAP system and forklift truck elements. To aid the auditing process on site and to ensure the team were meeting their KPI target and objective the on-site Unipart Security Manager was trained in all aspects of the job functions and is the key point of reference for the customer. During the initial stages of the contract our operatives were dealing with approximately 1,200 consignments per week and it was generally accepted by Mercedes that 5 counting measures was an acceptable target. However, it became evident very early on that the out part management and PI counting processes were highly efficient and the KPI measures were reduced to one counting error per week. During the F1 harmology process, which saw all formula teams producing the new 1.6 litre engine, the number of consignments being received by Goods In increased to 2,600 per week. Although the business had experienced a significant uplift in throughput our operatives were still able to maintain a level of one PI counting error per week. Having seen a significant increase in stock being delivered to site Mercedes were experiencing significant issues with being able to get the parts transferred from Goods In up in to the stores area and being able to pick parts quickly enough to meet production demands and F1 regulations. Due to the acute and critical nature of this issue Mercedes approached the Unipart security team and requested Goods Out and Stores areas to improve stock allocation and improve production capabilities. The Unipart Security team recruited 2 dedicated stores operative, 1 Goods Out operative and 4 temporary personnel to work in the stores area. Benefits Parts shrinkage reduced by 85 to 90% Ability to react quickly to fluctuating staff levels to meet the needs of the business Proven and effective stock management processes Significantly reduced PI counting errors Increased engine production capabilities Increased levels of security surrounding high value goods Results Contract with Mercedes extended for a further 3 years Mercedes Security team winning 'Team of the Year' at internal awards Unipart being awarded 1 of only 2 awards by Mercedes UK for our contribution during 2013 Verbal commitment by Mercedes to give additional stores requirements to Unipart as and when required.