Fuji USA first looked to outside management and support for their Distribution Centers through UTI Logistics during late 2005. Having a Third Party Logistics provider purchase and manage inventory turned out to be financially beneficial to Fuji USA.
An expansion of this philosophy took place during late 2006 and early 2007 when Fuji USA looked into consolidating their vendor base for MRO Warehouse and Packaging supplies to be supplied to three separate department: Warehouse, Packaging and Medical. Ten locations nationwide would be ultimately supported by one supply chain partner. Annual spend all locations – $2 million dollars, YE 2006.
Unique features of the PDA offering found to be key to the decision makers at Fuji USA:
Supply chain partner which can support nationally yet respond locally.
C-level attention at each Distribution Center location.
Flowchart of support from, CEO, Sales Manager, CSR Manager & DSR.
Results attained through SOP during first year as Fuji USA supply chain partner:
Confirmation that items purchased match items supplied through packaging audits performed through out the Fuji USA distribution chain.
Consolidation down to one supplier – PDA.
Monthly implementation reports provided by location consolidated on one report.
Bi-monthly invoice reporting by location consolidated on one report.
National Product Standardization, Pricing and Supply consistency with ability to report compliance back to corporate.
Monthly KanBan conducted to confirm adequate inventory supply.
Monthly “business review” conference calls among supply chain partners.