SOP enables 33% reduction in shipments for automotive retailers

SOP enables 33% reduction in shipments for automotive retailers

2nd December 2025 | 2 min read

The Challenge

Automotive retailers in North America were receiving between 15 and 30 separate courier packages daily from a regional Parts Distribution Centre (PDC). These shipments consisted of referral orders for items typically sourced from other PDCs when local stock was unavailable. While retailers requested a single consolidated daily shipment, system constraints within SAP prevented the consolidation of referral picks. The high volume of packages led to increased courier costs and growing frustration among retailers.

Unipart has supported these retailers in North America and Canada for decades, with a relationship spanning over 50 years. Unipart was asked to find a practical operational solution to reduce shipment volumes and improve the retailer experience without making changes to the SAP system.

The Solution

Unipart’s Outbound Team Leader April Walsh spearheaded an improvement initiative as part of the Unipart Way Gate to Great journey, targeting waste reduction and process efficiency. The team started by piloting a manual consolidation method with two retailers in North America. By introducing large courier boxes, they were able to group multiple referral orders into a single daily shipment. Clear visual controls and targeted training helped the team avoid errors and maintain smooth operations.

Following the pilot’s success, the team analysed two months of outbound data to identify additional retailers with high daily shipment volumes. The manual consolidation approach was then extended to these accounts, driving further improvements.

Throughout the project, the team managed practical challenges such as selecting the right box sizes and manually updating pick vessels in SAP when needed. They also enforced strict procedures to ensure hazardous items were never consolidated with regular goods or with other hazardous items of the same type.

Ultimately, this work led to the creation of a new Standard Operating Procedure (SOP) for manually consolidating shipments, effectively working around SAP system limitations without requiring software changes.

The Impact

The initiative reduced the number of daily packages sent to each retailer by 33%, cutting freight and packaging costs by a similar margin and saving approximately $2,700 per month per retailer. Retailers who previously received 15 to 20 boxes daily now receive only 2 to 6, significantly improving satisfaction and eliminating complaints.

Additional benefits included lower consumable and shipping costs and a streamlined process that allowed the team to take on extra responsibilities such as scanning and photographing courier shipments without increasing labour.

The project also reinforced the team’s understanding of visual standards and 5S principles (Sort, Set in Order, Shine, Standardise, and Sustain), helping maintain ongoing quality and efficiency.

It has also laid the groundwork for future improvements, including plans to develop Tracker Hawk, a tracking system originally created to monitor the movement of warehouse roll cages and provide retailers with better visibility. The system is now being enhanced to track parcel shipments as well, with automated emails that include tracking details and live courier links, helping retailers access information more quickly and easily.

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