Global end-to-end supply chain logistics management solution

Business Challenges for Logistics optimization

As a world-renowned consumer-digital brand leaders’ business expanded into multiple product lines, each of their products business units developed their own individual supply chain distribution strategies. Significant administration resources were therefore required to manage multiple suppliers and oversee the product flow, materials supply chain management and distribution activity. Movement of materials between multiple distribution nodes added increasing costs and complexity to the customers supply chain model. In this complex structure the bundling of products across product lines proved very difficult, with ever increasing distribution costs and continuing customer demands for improved service a more efficient solution was required.

Client Requirements for Logistics optimization

* Consolidated global supply chain distribution network with reduced overall costs

* Globally consistent distribution management processes and systems

* Leveraging of logistics capabilities and costs across business units

* End-to-end product management, including cost, planning, transport and delivery, from factory to customer

* Flexible supply chain solution allowing ease of regional configuration and returns

* Turnkey supply chain management of materials by service provider

* Significant improvements in on-time delivery

FGS Solution for Logistics optimization

* Designed centralized distribution network regionally (one hub in US, EU and Asia) with minimum order turn around time to all major markets

* Global product planning and delivery

* Streamlined global processes with consistent reporting systems

* Turnkey outbound transport management from factory to customer

* Management of multiple financial ownership and materials management models from SMI, consigned, customer-owned and FGS-owned

* Flexible IDL models in support of multiple business units

* On-going, collaborative, activity-based efficiency programmes delivering continuous improvements and driving down costs

Results for Logistics optimization

* Reduced global supply chain distribution nodes from 11 to 3

* Increased on time delivery from low 90’s to 99.5% resulting in increased levels of end-customer satisfaction ratings

* Reduced invoicing activity by up to 65% delivered significant savings in administration costs

* Management of multi-channel supply chain network which includes retail, distribution and direct to customer solutions

* Reduced inventory balancing between locations delivered increased inventory optimization, efficiencies, and visibility to product in all locations

* Utilization of FGS near shore and off shore low cost facilities delivered a 20% reduction in service costs

* Rapid positioning of material for spot promotions and special configurations enhanced by the elimination of inter-hub transfers

* Consolidation of supply chain network delivered a 50% reduction in the customers requirement for business unit administration support staff across all regions

Flextronics Global Services (FGS) is a strategic businesslogistics managementunit of Flextronics and one of the most respected global providers Fulfillment outsourcingof post manufacturing supply chain logistics servicessupply chain strategies.