Industries - Electronics
The consumer electronics industry is a highly competitive and rapidly changing sector
that demands comprehensive warehousing and logistics services.
Given China’s vast geographical coverage and extensive after-service requirement by consumers,
CNL recognizes that a good supply chain strategy is essential for client success,
and serving the consumer electronics industry is a core competency at CNL.
Client Challenge
Our client is an European Fortune 500 Consumer Electronics company that enjoys
leading brand and market share position in China.
In more than 20 years’ endeavor of market development,
the company has established an extensive while somewhat redundant logistics facility network across China.
To streamline its supply chain operations and provide responsive after-sales service is critical for the client to sustain
its leadership position in the evermore competitive marketplace.
CNL Solution
CNL supply chain consultants helped the client optimize its warehouse and service center network by carefully studying client’s sales historical data,
inventory management process and total logistics assets. Leveraging CNL’s dedicated regional distribution centers and public warehouses,
we also provided the client greater flexibility in seasonal periods. Our expertise in service parts logistics management enabled the clients to commit higher service satisfaction
to the consumers and reduce the overall cost while maintaining superior service.
The Result
- reduced number of warehouse from 52 to 15
- reduced total warehouse area size from 150,000 square to 82,000 square meters
- reduced service parts inventory management team from 33 people to only 3 people at client’s organization,
who manages a 12,000-SKUs service parts inventory and supplies around 1,000 authorized service centers all across China
- an increased inventory record accuracy from 92% to 100%