3PL Global TransformationCONTROL YOUR DESTINY BY FORGING LASTING PARTNERSHIPS

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Background

Mid size Broadcast & Media Manufacturer: Too many spares inventory carrying locations (30) Lack of unified, global inventory visibility Long spare parts order fulfillment lead times (30+ days) Excessive expedited shipping costs and Customs delays Lack of global strategy to fulfill spares to worldwide customer base Difficult to measure progress given lack of data, standards and multiple ERP platforms

CUSTOMER OBJECTIVE: Standardize and integrate all inventories, locations and systems to drive overall business efficiencies, reduce costs while

maximizing inventory service levels

BEFORE

TransformationProgress achieved over 18 months:

Competitive RFP, logistics supplier selection and implementation Inventory consolidation from 30 inventory carrying locations to three 3PL managed Regional Distribution Centers

in the United States, Singapore and the Netherlands. (44% inventory reduction) B2B supplier systems integration to automate order fulfillment and reverse logistics transactions through

electronic processing (100% global inventory visibility) Spare parts fulfillment (24x7) capability in Americas, APAC and EMEA regions Next Business Day delivery to US and EU customers sourced from closest Regional Distribution Center. 2-5 day

delivery to 93% of remaining destination countries

MANUFACTURER’S CUSTOMER FEEDBACK:“Since the switch to 3PL fulfillment we have seen a dramatic improvement in your ability to dispatch spare parts to meet our

broadcasting needs. It is amazing how fast you can have a spare part in our hands. You guys are the best in the industry in this area!!”

AFTER

Reflections

The selection process is the ideal time to create a wildly successful logistics outsourcing relationship from the outset; On the flip side, it can be the beginning of a deeply acrimonious relationship given outdated contracting structures and business models inherent in the industry

Select the most capable AND compatible 3PL partners; the right relationship dynamics will always drive more successful results Don’t settle for the “lowest” bidder Define your firms current state and know what measurable improvements must be made prior to beginning the supplier search When your firm is new to outsourcing logistics, hire an expert to assist you to source and deploy 3PL capabilities which can help

your firm stay objective and broker a win-win relationship between supplier and customer

CUSTOMER FEEDBACKAs an outside expert, how did DoConnect help your firm with the global 3PL implementation?

“Their team has a very simple “what do we need to do” approach and calmly lays out the steps required to meet a goal. The key returns for us were DoConnect’s experience in B2B (EDI) supplier integration, international trade compliance, and shipping from 3 rd party warehouses direct to

our customers in foreign countries.” – Global Project Manager