After years of relying on a traditional, decentralized distribution system based on company-owned and employee-operated warehouses, consumer electronics company Audiovox Corp. found itself in the mid-1980s with 35 imperfect facilities, mountains of orders passing between them, and too many inventory discrepancies. To stay competitive, Audiovox knew things had to change.
"As the controller during that period, I could sit down and constantly review with management the wastes of having so many facilities," recalled Joseph A. Incalcatera, now vice president of operations. "At one point, we tracked the number of inter-company transactions and it was mind-boggling. Orders were not going complete to customers because the stock was spread all across the country, and inventory variances were a big problem."
|"If we were to staff for that big push, what are we doing with that staff during the first and second weeks each month?" |
- Joseph A. Incalcatera of Audiovox
|"With tariff rates the way they were, it was actually cheaper to ship from Nevada to California than to ship from California to California." - Audiovox's Incalcatera|
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