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Product category: Memory Devices and Modules
News Release from: Toshiba Electronics Europe
Edited by the Electronicstalk Editorial Team on 23 March 2004

Logistics agreements to streamline
supplies

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Toshiba Electronics Europe has implemented two new transportation and warehousing agreements that further streamline the company's European logistics operations.

Toshiba Electronics Europe (TEE) has implemented two new transportation and warehousing agreements that further streamline the company's European logistics operations The new arrangements with DHL Worldwide Express and Caterpillar Logistics Services combine improved flexibility and efficiency with cost savings for the inventory management and European delivery of Toshiba's semiconductor products

Under the terms of the new agreements DHL is managing the European transportation of Toshiba Electronics products ranging from memory devices and microprocessors to power semiconductors, LEDs, and displays.

Caterpillar Logistics Services (Cat Logistics), a wholly owned subsidiary of Caterpillar, is providing warehousing and operations management services, information technology services and value-added services (such as transportation, documentation, claims, customs/Intrastat/VAT reporting and office helpdesk services) for these products including storage space of 2270m2 at its warehousing facility in Bornem, Belgium.

The new arrangements replace a previous agreement that Toshiba Electronics Europe put in place with DHL Worldwide Express in 1998, under which the global carrier subcontracted warehousing to Caterpillar Logistics Services.

Toshiba's decision to sign two new agreements follows an extensive period of performance benchmarking and assessment in line with the company's commitment to the six sigma measurement-based quality methodology.

The benchmarking project was launched in 2003 by Alfred Bxrsig, Toshiba Electronics Europe's Vice President of Business Operations.

Discussing the new arrangements, Bxrsig states: "As our original contract with DHL was due to come to an end in November 2003 we began a detailed evaluation and benchmarking process.

Utilising six sigma methodology Toshiba was able to identify a number of customer service improvements as well as cost saving benefits.

As part of this process we compared a number of different providers for transportation and warehousing.

This enabled us to negotiate a competitive and flexible arrangement with our existing suppliers by dividing the contracts into one with DHL for transportation and one with Caterpillar Logistics Services for warehousing, operations, information technology and value-added services".

To implement the new logistics and distribution infrastructure it was necessary to move all warehousing operations from one of Cat Logistics Bornem-based facilities to another complex 1km away.

To eliminate the possibility of disruption to customers, this transition took place over a single weekend, with Toshiba shutting down operations at the first facility on Friday 20th February and recommencing operations at the new Bornem location on Sunday 22nd February.

Udo Karrenberg, TEE' Logistics Manager commented on the move to new warehousing facilities: "Despite the need to move operations, our priority was to ensure absolutely no disruption to our European customers.

Wherever possible, systems and equipment were moved, installed, and tested in advance of the live date.

Systems that could not be moved in advance, along with all of the existing stock, were transferred over the weekend of 21st February.

A detailed plan and hard work from everybody involved (including IT experts from both TEE and Cat Logistics) ensured that there was no delay to the first DHL pick-up, which took place at 1800 on Monday 23rd February".

The Cat Logistics warehouse in Bornem is just 30 minutes by road from the DHL hub in Brussels that handles all inbound and outbound material for Europe.

As a result, the new agreements continue to ensure that delivery times for the vast majority of Toshiba products from our warehouse to the customer will be no longer than two days".

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