It's hard to say no to IBM. So when the giant computer maker told all of its monitor suppliers to implement a just-in-time delivery model with a maximum response time of 48 hours, Lite-On Technologies Corp. didn't hesitate for a moment.
With headquarters in Taipei, Taiwan, Lite-On claims to be the fourth-largest monitor manufacturer in the world. It also produces CD-ROM drives for personal computers. Formed in 1989, the company had already achieved revenues of US$800m by 1995.
Yet Lite-On had no prior experience in supplying product globally on a JIT basis, said Jasmine Chan, logistics department manager. Nor had the third-party logistics (3PL) provider it hired to do the job, Golden, Co.-based GeoLogistics. For both companies, it was a matter of on-the-job training.
|GeoLogistics was awarded a six-month contract - hardly a ringing endorsement by Lite-On, but indicative of the need to build trust.|
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