Wyse Technology would have gotten around to outsourcing its logistics functions eventually. But the Y2K crisis hastened the decision.
With dual headquarters in San Jose, Calif. and Hsin Chu, Taiwan, Wyse is among the leading providers of so-called "thin client" technology - network computer terminals that lack hard drives, depending instead on centralized servers at sites remote from users. Last year, Wyse reportedly shipped six times as many Windows-based terminals to distributors and manufacturers as its closest rival. Worldwide, its installed base numbers more than eight million terminals and thin-client devices.
Wyse, which recently went public on the Taiwan stock exchange, proudly offers a range of products that are Y2K-compliant. But its own logistics systems were less sophisticated, and to upgrade them would have involved spending money in an area that was not considered to be among Wyse's core competencies, said Director of Operations Sharon McCorkle.
Instead, Wyse went looking for a third-party provider that could handle a wide range of supply-chain activities while erasing assets from the balance sheet. At the same time, the company hoped to streamline its information systems and eliminate any lingering Y2K problems.
Following a six-month selection process, Wyse chose Emery Worldwide Global Logistics, a subsidiary of CNF Transportation Inc. based in Redwood City, Calif. Under a three-year contract, Emery will manage much of Wyse's North American distribution, including both inbound and outbound transportation. Value-added services include product testing, customer support, management of returns, repairs and final assembly. The result, Wyse hopes, will be reduced handling of its product, shorter cycle times, and improved customer responsiveness.
Emery's center of operations for Wyse is a 170,000-square-foot facility in Milpitas, Calif. There, Emery maintains a customer service center and repair operation. It also reconfigures and customizes units shipped from Wyse's manufacturing plant in Taiwan. By relying on Emery's expertise in logistics, Wyse hopes to increase the ability to enhance product at the last possible moment.
|The contract features generous incentives for Emery. "To bring about change and promote efficiencies, both companies must be rewarded."|
- Don Cox of Emery Global Logistics
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