Case Studies
Outsourcing Generates Supply Chain Efficiencies
Overview
Analytics & Modeling - Predictive Analytics Functional Applications - Enterprise Resource Planning Systems (ERP) | |
Transportation | |
Logistics & Transportation Warehouse & Inventory Management | |
Inventory Management Predictive Maintenance Supply Chain Visibility | |
Cloud Planning, Design & Implementation Services System Integration Training | |
Operational Impact
Toshiba achieved significant operational improvements through the collaboration with C.H. Robinson. The implementation of Navisphere technology improved Toshiba’s supply chain visibility and efficiency. Navisphere online access provides customized reporting, ability to track shipments, and business intelligence. To meet customer requirements, C.H. Robinson helped Toshiba set up EDI transactions with suppliers. The team also updated the Vietnam warehouse with scanners and barcodes to improve operational efficiency. Prior to the improvements, customer service had up to a 24-hour delay. Now, forklift drivers scan shipments and the shipment information is automatically entered into Toshiba’s ERP system. Automation consolidates orders more quickly and gives customers same-day access to Toshiba’s web portal to pick items in stock and see freight costs. | |
Toshiba lists service — from experienced people to account management — as a major benefit. For example, account management and process improvement helped reduce freight damages. C.H. Robinson’s account manager worked with a carrier known to have a history of damaging freight. By establishing and posting packaging standards for Toshiba, freight damages were reduced by 90 percent. Additionally, C.H. Robinson account managers help reduce costs through consolidation and optimizing inventory at regional distribution centers. Account managers also monitor supply chain industry developments — from emerging work stoppages to changing regulatory policies — to keep Toshiba leadership informed of potential impacts on their business. | |
C.H. Robinson operates as the MBU’s logistics department and functions as an extension of Toshiba’s team. Toshiba leadership describes the collaborative outsource relationship as additive, not subtractive. C.H. Robinson identifies continuous improvement strategies and works collaboratively with Toshiba to implement actions to improve their operations. In fact, Toshiba adopted several C.H. Robinson best practices, including mirroring the onboarding process for their customer contacts and setting up key account managers to provide oversight, accountability, and communication between Toshiba and customers. | |
Quantitative Benefit
$230,000 savings in LTL freight spend | |
$135,000 reduction in bonded warehouse costs | |
90% reduction in shipping damages | |