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Feb 26, 20190 min read

Automotive SKD Packaging - A Case Study

Updated: Mar 23, 2023

A car manufacturer is assembling 12,000 vehicles yearly in a developing market; SKD vehicle bodies are shipped from the company’s home market to the assembly destination packed two units on wooden skids per 40 foot container, each skid weighing 250 KG; costing the company 250 USD. A high number of yearly truckload deliveries of the wooden skids are required at the plant, and in-plant workers spend much time on assembling the skids before car bodies can be loaded. After loading the vehicle bodies in containers, containers are transported 200 km from plant to port in the home market before undertaking a sea journey of 14,000 km, and an inland delivery by truck of 900 km in the country of assembly, taking a total of 31 days at a cost of 2,200 USD. The car manufacturer sets out to increase efficiency of loading while reducing cost and environmental impact through optimizing its method of shipping.

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