With a primary distribution operation located on the West Coast and a demand center on the East Coast, this company was experiencing rising transportation costs and extended transit times to get consumable products to their final destinations. Combine this situation with rapid company growth and quickly this issue became a significant risk with the potential to inhibit future growth. This company’s inventory also included temperature-sensitive products with specific handling and storage requirements, so no ordinary “off the shelf” solution would work.
There was also an opportunity to improve their service parts division. Because the customer also manufactures critical test equipment, they were looking for a service parts solution that could provide more timely and accurate access to information that could ultimately help them improve customer service and effectively manage service costs.
FedEx SupplyChain worked extensively with the customer to understand their current business and future strategies. After extensive financial analysis, FedEx SupplyChain proposed moving distribution of the company’s compounds and consumables to the FedEx ISO 13485- certified Global Distribution Center (GDC) in Memphis, Tenn. Since the customer’s primary demand center was on the East Coast, centralizing distribution operations could improve the average transit time from 3.5 to 2.4 days, lower costs and boost flexibility.