Our client 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 a leading camera manufacturer. What would happen next?
WHAT OBSTACLE WAS OUR CLIENT FACING?
A company’s warehouse layout and maintenance is a reflection of their company philosophy and value proposition. When our client expanded their outside management philosophy in 2006, they were looking to consolidate their vendor base for warehousing and packaging supplies. These would be separated by department: warehouse, packaging, and medical. Ten locations nationwide would be ultimately supported by one supply chain provider.
THE PDA WAY
A leading camera manufacturer who contacted PDA for third party logistics because they wanted a supply chain partner who can support nationally yet respond locally:
- This is a key success factor for providing our managed inventory solutions
- Our client was able to benefit from consistency across locations, but also from the attention-to-detail and customer service that exists at the local level.
- This means C-level attention at each distribution center location and flowchart of support from CEO, Sales Manager, CSR Manager, and DSR.
WHAT WAS THE OUTCOME?
The results attained through SOP during first year as a supply chain partner for this larger camera manufacturer showed dramatic improvements in achieving lean inventory and contributed to maintaining a healthy business. They experienced confirmation that items purchased matched items supplied through packaging audits performed throughout the distribution chain. Consolidation down to one partner – PDA – meant complete transparency in communication.
Our client receives monthly implementation reports, bi-monthly invoice reporting, and monthly review calls among supply chain partners. One of the top benefits they receive through our managed inventory program is national product standardization, pricing, and supply consistency with the ability to report compliance back to corporate.