2. Background
Mid size Broadcast & Media Manufacturer:
Too many spares inventory carrying locations (30)
Lack of unified, global inventory visibility
Long spare parts order fulfillment lead times (30+ days)
Excessive expedited shipping costs and Customs delays
Lack of global strategy to fulfill spares to worldwide customer base
Difficult to measure progress given lack of data, standards and multiple ERP platforms
BEFORE
CUSTOMER OBJECTIVE:
Standardize and integrate all inventories, locations and systems to drive overall business efficiencies, reduce costs while
maximizing inventory service levels
3. Transformation
Progress achieved over 18 months:
AFTER
Competitive RFP, logistics supplier selection and implementation
Inventory consolidation from 30 inventory carrying locations to three 3PL managed Regional Distribution Centers in
the United States, Singapore and the Netherlands. (44% inventory reduction)
B2B supplier systems integration to automate order fulfillment and reverse logistics transactions through electronic
processing (100% global inventory visibility)
Spare parts fulfillment (24x7) capability in Americas, APAC and EMEA regions
Next Business Day delivery to US and EU customers sourced from closest Regional Distribution Center. 2-5 day
delivery to 93% of remaining destination countries
MANUFACTURER’S CUSTOMER FEEDBACK:
“Since the switch to 3PL fulfillment we have seen a dramatic improvement in your ability to dispatch spare parts to meet our
broadcasting needs. It is amazing how fast you can have a spare part in our hands. You guys are the best in the industry in this
area!!”
4. Reflections
The selection process is the ideal time to create a wildly successful logistics outsourcing relationship from the outset; On the flip
side, it can be the beginning of a deeply acrimonious relationship given outdated contracting structures and business models
inherent in the industry
Select the most capable AND compatible 3PL partners; the right relationship dynamics will always drive more successful results
Don’t settle for the “lowest” bidder
Define your firms current state and know what measurable improvements must be made prior to beginning the supplier search
When your firm is new to outsourcing logistics, hire an expert to assist you to source and deploy 3PL capabilities which can help
your firm stay objective and broker a win-win relationship between supplier and customer
CUSTOMER FEEDBACK
As an outside expert, how did DoConnect help your firm with the global 3PL implementation?
“Their team has a very simple “what do we need to do” approach and calmly lays out the steps required to meet a goal. The key returns for us
were DoConnect’s experience in B2B (EDI) supplier integration, international trade compliance, and shipping from 3rd party warehouses direct to
our customers in foreign countries.” – Global Project Manager