Case Study: Outsourcing Assessment

The Challenge

• A Canadian manufacturer of electronic and computer-related products wanted to determine how its internal distribution operational costs would compare to LSP costs and if it should consider outsourcing.

Tompkins' Role

• Performed a one-month LSP feasibility assessment for the Canadian operations, which included two types of distribution centers and all Canadian-managed transportation operations
• Created a LSP cost model that allowed for a comparative analysis of the company’s current warehousing costs to estimated LSP costs
• Reviewed inbound container logistics management and outbound shipping for operational opportunities
  

The Results

• From the study, Tompkins concluded that an outsourced warehouse solution would not favourably impact the company’s distribution costs or service levels. The project team identified transportation and warehouse tactical improvement opportunities that would potentially enhance company distribution costs.
• The company has acted on several of the identified improvement areas and continues to operate its own distribution network.
  

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