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Companies need quick solutions in order to keep pace with rapid growth. In the case of Sony's operations in Mexico, the time between negotiations and the opening of a new distribution center was less than four months.
The Sony supply chain might have seemed sufficient to the casual observer. Prior to this year, the company had one main facility in Mexico City for the domestic distribution of audio and video electronics components, the handling of replacement parts and a service center. The warehouse covered 200,000 square feet. Four others, of approximately 10,000 square feet each, were located in Tijuana, Guadalajara, Monterrey and Veracruz.
But Sony was looking well beyond its current market position in Mexico. It was projecting sales growth of at least 40 percent annually over the next three years, says Carlos Irving Rojas, logistics manager of Sony Mexico. The existing distribution network wouldn't be able to cope. Already the company was having trouble making the necessary transfers of inventory in order to keep up with demand outside Mexico City.
Guadalajara, viewed as Sony's second biggest market in Mexico and its most promising area of growth, was selected as the location for a new and bigger regional distribution center. Sony turned to Alpharetta, Ga.-based Redwood Systems, a subsidiary of Consolidated Freightways, to create and manage the facility.
Following a visit by Sony to the Guadalajara facilities of Redwood, negotiations began in January of this year, with operations under way by mid-April. The new center for Sony covers 50,000 square feet and is projected to expand to 100,000 square feet by year's end. It combines inventory from the previous warehouses in Guadalajara, Monterrey and Veracruz.
|Sony trained warehouse personnel on|
Thursday, transferred inventory on
Saturday, and shipped the first order on Monday..
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