The Challenge

A global leader in electric vehicle (EV) manufacturing operates under a just-in-time (JIT) production model that demands flawless coordination between suppliers and assembly lines. For one of EV Manufacturer’s’s critical suppliers, the challenge was to deliver over 8,000 specialized automotive components to EV’s factory every month. Any disruption in this supply chain could result in costly production delays, strained supplier relationships, and significant financial penalties. Typical penalties in this value chain are $10,000 per minute delay, which stops the assembly line. So, one hour of delay could amount to $600,000 in penalties.

The supplier faced several operational hurdles. Unpredictable delays caused by traffic variability, dock receiving logistics, and order changes were frequent. These inefficiencies not only disrupted delivery schedules but also led to annual penalty costs for delayed deliveries and missed targets. Additionally, the lack of real-time visibility into shipments created risks of lost transport units and missed delivery windows, further jeopardizing the EV manufacturer’s high-stakes production timelines.

Compounding these challenges was the reliance on outdated legacy systems that lacked predictive capabilities. Without AI-driven forecasting or dynamic optimization tools, the supplier was left reacting to issues rather than proactively managing them. The stakes were high—EV OEM’s’s production line depended on precision, as each part was mapped to vehicle VIN, which were already slotted for production and any failure to deliver critical parts such as seats on time could have cascading effects on the entire operation.

Our customer, the supplier to EV OEM, suffered penalties as one of the driver stopped their vehicle on way to the factory, slept on the wheel and the whole assembly line came to a screeching halt. Recognizing the need for a transformative solution, the supplier management team turned to Sensitel to address these critical pain points and enable a data-driven logistics overhaul to meet EV manufacturer’s’s exacting standards.

Solution

For the supplier, the search was on for an advanced logistics solution to ensure the timely delivery of over 8,000 specialized parts per month to the OEM’s factory. The supplier needed a system that would not only address operational inefficiencies but also provide real-time visibility, predictive analytics, and proactive risk management to meet the demands of this innovative OEM’s just-in-time (JIT) manufacturing model.

Sensitel’s TrackAware platform emerged as the ideal solution. It was designed to integrate seamlessly into existing supply chain operations while leveraging cutting-edge AI and IoT technologies to optimize performance. TrackAware provided real-time GPS tracking for shipments, ensuring full visibility from Finished Goods Inventory (FGI) to Tesla’s factory floor. This enabled the supplier to monitor delivery progress at every stage and ensure chain-of-custody compliance, significantly reducing instances of lost shipments.

The platform’s AI-powered predictive analytics played a crucial role in addressing delivery delays. By analyzing historical transit data, weather patterns, traffic conditions, and carrier performance, TrackAware accurately predicted delivery times with 20 minutes precision. This allowed the supplier to proactively adjust routes and schedules, reducing variability in arrival times by 15% from earlier schedules. 

Business Outcome

Sensitel’s team collaborated closely with the supplier’s warehouse managers, project managers, and supply chain integration teams to ensure a seamless implementation of the TrackAware platform. Thanks to Sensitel’s nimble approach, the solution was fully implemented and operational within just two months. The rollout began with tracking serialized car seats and later expanded to other critical components such as headliners and frames.

One of the most significant benefits of implementing TrackAware was the dramatic reduction in delays at the receiving dock of the OEM factory. Before TrackAware, supply chain participants had no way to quantify the time spent waiting at the gate to be assigned a delivery dock. These wait times often extended into hours, frustrating drivers, delaying shipments, and incurring fines that could reach up to $10,000 per minute. With TrackAware’s metrics, all stakeholders gained visibility into actual dwell times, enabling them to identify bottlenecks and improve operations effectively.

The platform also streamlined invoicing for delivered goods. Previously, errors in invoicing often led to discrepancies amounting to six-figure dollar sums. By using TrackAware, these errors were identified and recovered, significantly improving financial accuracy. Additionally, the time between delivery and payment was drastically reduced—a critical improvement in an industry plagued by late payments.

Perhaps the most transformative benefit was the scalability TrackAware brought to the supplier’s operations. With improved predictability in delivery arrivals, the OEM was able to ramp up production by 30–40% annually until it reached full factory capacity. This ensured that production schedules remained uninterrupted, even as demand grew exponentially.

By leveraging TrackAware, warehouse managers and supply chain managers could shift from reactive problem-solving to proactive decision-making based on data insights. This not only made their jobs easier but also allowed them to run their operations more efficiently without constantly fighting fires. Sensitel’s solution empowered them with the tools needed to manage their supply chains effectively while meeting the rigorous demands of automotive manufacturing.