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Manufacturing Companies

Manufacturing companies all have logistics problems. These days,those are most often fixed through a combination of recognizing where thelogjams are located, and applying a generally high-tech solution. The tencompanies profiled below all demonstrate this combination. RCA is a well-known name in consumer electronics, and particularlytelevisions from palm-sized to room-size, plus other audio-video equipment. Its Bloomington, Indiana, its Thomson Consumer Electronics plant shipsabout 500,000 orders each year (15,000 products a day rolling off assemblylines at Bloomington), but it does so with a patchwork of 25 separatefreight carriers globally (15 in the U.S.), which could be a logisticsnightmare; while it is preferable to push down shipping logistics to acarrier (as many companies do with UPS, using not only their freightservice but their shipment tracking, etc.), RCA was manually entering billsof lading for every shipment. In a highly competitive market, it wasimperative that orders reach retailers in a timely manner in order not tolose market share. Each bill-of-lading contains important product andshipment information such as product quantity and ser


That costs less and gives us more value forwhat we spend. The forms themselveswere a combination of phone, fax, email and mail orders and all needed tobe addressed to the appropriate party. Even thebest keypunch operator's average five errors per hundred, resulting inorders misplaced, delayed, or shipped to the wrong location. However, the company had three differentbusiness units, each with its own distribution channels and methodologiesof reordering parts. It also relied on batch processing and gave slow turnaroundfor order validation and sales analysis reports. It also includesthe to-date sales for the year and month for each major retailer that NewBalance serves; the sales of that shoe (or its predecessor) for the sameperiod last year at that retailer; the orders for that retailer that haveyet to be filled by New Balance's factory or warehouse; and what the salesrep had forecast for the current month. The fact that Foot Locker hadgotten into a spat with Nike over pricing of its high-end shoes also helpedNew Balance, in all likelihood. 1 billion North American soup market isabout 74. The solution was partnering with United ComputerGroup, which already had a relationship with H-P, and using its LANSAproduct. Three in brief Morton Salt, leading producer and marketer of salt, was sharing amainframe for all sales force functions for three divisions in 1995, MortonSalt, Morton Chemical and Morton Corporate. With the Web sites' flexibility, they can varyaccess depending on buyer needs and also buyers can vary levels of accessfor their own staff. Also, in some countries, 80 percent of the cars aremade to order; in others, they are basically delivered out of stock. WD-40 In 1997, an acquisition caused WD-40, the formerly single-productlubricant manufacturer, to reconsider the information systems supportingits manufacturing and distribution.

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