Six Star Magazine Six Star Magazine Winter 2011/2012 | Page 6

NEWS

SUBARU CANADA PARTS DISTRIBUTION CENTRE:
THE UNBREAKABLE SUPPLY CHAIN
As we all know, the earthquake and subsequent

this scope to have no effect on our business,

tsunami that hit northeastern Japan on March 11,

but we were determined to make it have as

parts ordered versus the number of orders

2011, caused massive devastation to the country

little effect as possible.

filled; if 100 unique parts were ordered by a

and its people. Thousands were impacted by

In response to the earthquake and its

The term “fill rate” refers to the number of

Subaru dealer and SCI was able to provide

the disaster and the after-effects, both physical

effect on Japan, a plan was put together,

95 of those parts, this would represent a

and psychological, which will take many years

one involving parent company Fuji Heavy

95% fill rate.

to heal. The Japanese industry did not escape

Industries (FHI), SCI and our sister company

unscathed either; some 125,000 buildings

south of the border, Subaru of America (SOA).

were destroyed or severely damaged, a

Together, the three organizations decided

SCI's industry-leading fill rate is 98%; part
of the reason for this impressive figure is
an innovative carousel storage system that

number of them belonging to key automotive

to ensure customers were prioritized by

houses approximately 12,000 of 23,000 total

industry suppliers.

agreeing to send parts to any dealer in North

part numbers or 56% of the parts that are

America who needed them, regardless of

picked each day to be sent out.

Of course, our first response at Subaru
Canada, Inc. (SCI), collectively, was to be

where the parts in question were being

gravely concerned for the health of our

stored. Individual dealers also shared

force, the SCI fill rate dropped from 98%

friends, relatives and business colleagues.

parts among themselves, proving that this

to 96.5% — a remarkably minimal decline

After the severity of the damage had come

response was a real team effort. It was also

considering the disruption being felt in Japan.

into sharp focus, we turned our attention to

a great success as our exceptional fill rate

Just three weeks after that, parts suppliers in

our customers here in Canada.

was virtually unaffected throughout this very

Japan were operational again and FHI was

challenging time period.

able to start shipping parts to North America.

There was no possible way for a disaster of

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As the makeshift arrangement came into