The Challenge
When Honda required all suppliers to eliminate lead and other hazardous materials identified in the EU (European Union) directive, the only approved lead-free weight suppliers were in Japan. With shipping fees and the supplier locations of the suppliers were considered, it was determined that using current suppliers could increase costs as well as lead times.
How GLA Addressed the Challenge
GLA worked with two North American suppliers to develop their lead-free weight supply capability.
The Benefits of the GLA Solution
- A cost reduction of 25%
- Allows GLA to offer Honda the highest quality available
- Allows GLA, Honda, and suppliers to react quickly to change
- Reinforces GLA's commitment to environmental responsibility
- Honda met EU requirements early and gained a marketplace advantage
- Eliminated exchange rates
- Reduced backorders from overseas shipments and stabilized the supply line
