Case Study – Electronic Goods

Case Studies

Case Study – Electronic Goods

Introduction

A key customer in the manufacturing sector is facing high distribution cost in delivering their finished products to their various markets. Even with stock points located near to their market region, their costs are still high as these stock points are often congested. They seek help from the Mitsui-Soko Supply Chain division to create a solution that meets their demands in their respective markets without incurring too much transportation costs.

The Challenge

The main cause of their high distribution cost has to be first determined. After discussions, we establish that some of the stock points are not optimal to shipping the goods. With this established, we strive to create a solution that reduces ocean freight, stock point warehousing and local transportation cost.

Solution

We compare various costs, analyze the current distribution patterns and costs and test out options based on current statistics. After these options are tested, we present a solution that helps our customer in setting up additional stock points.

Results

After the implementation of our solution, our customer sees an increase in the efficiency of their distribution, with a reduction of almost 10% in their monthly logistic cost.