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West Coast Consolidation Lowered Costs and Improved Inventory Performance

A global networking equipment manufacturer was managing warehousing, value-added services, and ocean transportation through multiple providers. Consolidating operations into one West Coast distribution model improved service consistency and reduced cost.

Table of contents

Customer Overview

Challenges

Solution

Results

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Customer Overview

Leading networking equipment manufacturer
Global operating footprint
Product required serial number tracking
Needed value-added configuration and reprogramming support

Challenges

Escalating cost from multiple service providers
Inconsistent service across warehousing, value-added services, and ocean transportation
Complex handling requirements including serial tracking and custom reprogramming

Solution

Consolidated West Coast operations into a single distribution center
Built dedicated capability for firmware re-flashing, hard-drive installation, re-boxing, re-labeling, and SKU conversion
Added ISO 9001 certification and cool-room capability

Results

Lower inventory carrying cost through site consolidation
Reduced handling and transportation cost with onsite value-added services
Improved on-time performance and inventory accuracy
Consistent process mapping supporting ISO 9001 certification

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