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GLOBAL LOGISTICS
BACKGROUND
- $6 billion division of global electronics company
- Focus had historically been on marketing and manufacturing; logistics operations did not keep pace with international growth
INITIATIVES
- Implemented a global freight management program
- Set up distribution channels into Pacific Rim
RESULTS
- Reduced freight costs by over 25%
- Internet-based solution lowered transaction costs and improved visibility
- Consolidated supplier base from 35 to 7
- Eliminated major distribution facility while improving service levels
- Cut cycle times by 60%
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