Case Studies

Delphi Technologies

Industry: Aerospace
Solution: Warehousing/Value-Added Services
GAA Company: Key Logistics Solutions

Unique Solution:

Deliver Perfect Orders 100% of the Time with 1,200 Miles Between Manufacturing Plant & 3PL/Assembly Plant

Delphi Technologies is in the passenger car and commercial vehicle markets, and in vehicle repair through a global aftermarket network. The company makes combustion systems, electrification products, and software and controls. Delphi works with leading global automotive companies and requires that its supply chain partners to meet the highest standards in quality.



ARD Logistics - part of the GAA Family of Companies - faced a huge challenge working with longtime customer Mercedes Benz. The Mercedes philosophy of made-to-order vehicles posed some specific - and difficult - requirements in designing a custom system to meet their needs.

The biggest hurdle was distance - 1,200 miles between the manufacturing plant and the 3PL and assembly plant to be exact. An automated storage and retrieval system would be required to hold three days' worth of production, support two plants error-proof receiving, capture a small floor space footprint and deliver perfect orders 100% of the time. Daifuku was able to develop a value-chain solution using proven experience in material handling technology.

Solution Highlights

  • A Lean Process: Build-to-Customer Order (high-value approach) vs. Build-to-Inventory
  • Assures 100% Harness Availability: Just-In-Time & Just-In-Sequence at the Assembly Line
  • An Agile Process to Support Flexibility in Scheduling Release of Vehicles to Assembly Operations
  • Protects Harness Product through All Manufacturing, Logistics & Assembly Operations
  • Sustainability Improves Employee Ergonomics by Handling the Large (150 lb.) Load
  • Long-term Delphi Contract with Mercedes Enabled Automation to Justify the Capital Investment
  • Expandable: Added the Engine Harnesses into Totes & Avoided Extra Investment in Material Handling Systems; Adjacent Space Exists for Expanding the AS/RS Buffer

Solution Selection Process:

  • Automated Equipment was Selected Over Conventional Rack for a Variety of Reasons
  • One-Third Footprint: 8,000 sq. ft.
  • 100% Automated Tote Selectivity & Delivery to Build Station
  • Improved Load Handling Ergonomics
  • Harness Value & Criticality to a Specific Vehicle
  • Avoidance of Sustained Labor & Equipment Expense
  • Avoidance of Complications by Manually Storing & Retrieving Totes to Decrease Errors & Risk of Missed Deliveries Automated Storage was the Only Way that ARD/Delphi could Support Both the Manufacturing & Assembly Facilities Equally