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Case Studies by Service
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Based in the US, our client provides spare parts and support services for computer data storage devices in mission critical applications.
Services Used by this Client
- Strategic Stocking Locations
- PUDO's
- Reverse Logistics
- Transport Services
Customer Requirements
- Their business model was to hold spare parts for mission critical devices within their Clients' premises.
- Their Clients' engineer would contact a call centre for technical support and replacement instructions on which spare parts to consume. Following which, the part would be transacted in an ERP application to attempt to maintain visibility of local inventory.
- Their problem was that their Clients often consumed parts without needing technical support, which would result in critical stock out situations.
- They therefore needed a 24/7/365 global distribution network. This requirement came with a number of imperative services which would allow them to remain competitive with other global solution providers.
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Our Solution
- Working together, we identified Europe as the priority, due to time and costs of obtaining parts from the US to European cities.
- We determined the optimum no. of stocking locations required in order to meet their SLAs and worked with our partners to establish locations in each city.
- Using our intelligence software, Matrix, our Client is able to identify the location of part numbers, place orders in the US directly onto the appropriate stocking location and track progress. A multi-modal transport solution was established for returning defective parts to the Client for repair and reuse.
- A revised pricing structure was established to achieve lower fixed costs.
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Outcome
To date, we have:-
- Established stocking locations in Helsinki, Finland; Stockholm and Gothenburg, Sweden; Copenhagen, Denmark; Paris, France; and Bristol, UK.
- Incorporated our Clients’ new UK office into the network so that they can hold critical spares for their local region, thus negating the need to establish a further location and therefore cost.
- Established a central distribution centre in Telford, UK which replenishes inventory across the network.
- A control tower in the UK and Netherlands provided 24/7/365 support to all locations. Any orders created out of normal office hours are responded to in order to maintain the required service levels.
- Complementing this network, is our transport management service, Deliver Plus, which is used by the Client to ship bulk inventory of spares from the US to Europe, either performing direct replenishment of stocking locations or the central location in Telford, UK. Our Deliver Plus service reduced their shipping costs by over 60% alone, due to the increased purchase leverage we have.
- Our Client is now able to achieve their SLA commitments and is able to demonstrate this confidence to their current and potential Clients. This has been achieved by having the TSB supply chain infrastructure supporting them.
- 2012 will see a roll-out across North America and Asia Pacific regions.
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