The consumer products division of Ericsson, the Swedish telecommunications giant, found additional dollars to invest in its capital-intensive business by outsourcing inbound logistics and shifting responsibility for inventory management to vendors.
Service parts providers may offer central warehousing, repairs or merely quick delivery, but OEMs are finding their networks essential to their continued operations.
As Kodak's European business changed in response to economic union and various internal factors, the company needed a logistics solution that would provide greater flexibility and lower overhead costs at key facilities. It opted for outsourcing with a shared-use approach, a concept that was given an unusual and innovative twist in the U.K. with partner MSAS Global Logistics.
Fujitsu PC needed help with its notebook operation, which was suffering from both excess inventory and slow deliveries. It turned to FedEx for a total logistics solution and now is getting the results it wanted - but the start-up was far from smooth.
Beginning in 1996, the household products manufacturer decided to replace its centralized distribution pattern with an approach that relied on regional distribution centers across the country. Mark VII was named to help connect the links in the network through intermodal shipments.
Never mind the thriving economy. U.S. manufacturers and distributors are more demanding of service quality - and less tolerant of failure - than ever before.
