Case Study: Global Supply Chain Strategy and LSP Selection

The Challenge

• The wholesale distributor of a company that designs, manufactures and markets innovative wireless solutions was attempting to function as a logistics service provider (LSP), which created serious performance problems for the distribution of marketing materials in Latin America.
• With plans for growth in other regions of the world, marketing needed a global solution.
• Overall, the company was experiencing poor service, poor visibility and high costs from their existing LSP.

Tompkins' Role

• The wholesale distributor realized savings, improved customer service and inventory control, and gained better support to local marketing agents.

  Established the need for a global LSP, recommended the top three candidates, evaluated candidates, and advised the company on selection, contract negotiations and implementation
• Applied firm-wide depth of knowledge of the LSP industry and its major companies that have global operations in the product line to identify and engage top-notch providers and guide the company through the selection process
• Recommended the selection of a highly flexible, global LSP with a broad range of services suitable to the company’s requirements
• Constructed an estimate of baseline cost (since one did not exist) to project savings and service requirements
  

The Results

• Improved customer service and visibility of goods throughout the distribution network by achieving faster, more accurate order fulfillment and fewer losses in transit
• Realized savings, reduced inventory, and significantly improved inventory control
• Gained better support to local marketing agents, which enabled marketing to perform promotional events as scheduled