Finished Parts Inventory Management for Volkswagen

Wednesday, November 5, 2003

[Corte Madera]— The Pasha Group has been awarded a three-year contract to manage the inventory and delivery of certain finished components to the assembly line of the Volkswagen factory in Puebla, Mexico. The Pasha Group, S.A. de C.V., based in Mexico City, will manage the operation.

The Mexico Volkswagen plant, which has been in operation since 1964, currently produces 1,500 cars per day for the U.S., Mexico and South American markets. Until July of this year, Puebla was the last remaining location in the world producing the Classic Beetle, which has been the first car of choice for the Mexican market. The facility is now building the New Beetle, the New Beetle Cabrio, Golf and the A Four Jetta.

With less than two weeks to establish operations and hire 150 employees, the Puebla operation was in full production on August 22, 2003. Pasha processes over 60,000 parts per day for 50 different line items. Once notified, Pasha has a four-hour window to pull the correct parts and get them to the assembly line, which runs continuously, 24 hours per day, 5 days per week.

The process of managing the supply and inventory of finished vehicle components is a complex and challenging logistics area in the manufacturing plant. Pasha's commitment to quality, innovative approach and proven performance history were key to winning the business in this niche market. The objective of Pasha's logistics effort is to ensure reliability and accelerate movement through the supply chain, resulting in cost savings as inventory levels are optimized and supply is matched with expected demand.