International Marketing : Case Study

OldProjectsData

New member
Philips northern american department wanted to improve customer relationships and reduce costs with a more powerful and
managed logistics operation.
They decided to outsource all logistics. They needed a high end solution provider who would take care of everything ..


The challenges were :-

1.) Philips consumer electronic products have a short life span and it is hard to predict what is in more demand at what
time and in which location.

2.) Certain big products like big screen TV's are subject to strict loading rules and are very fragile.

3.) And nearly all products are high value which are easy to sell in the streets .

4.) Cross border transportations, customs and frieghts

Philips invited proposals to everyone with the above complications open to them .

The names were shortlisted and the contract was given to Ryder Systems.

Ryder systems recommended philips to close down few of its distribution centres and let it handle the distribution.

Ryder had long-standing relationships with customs department. Ryders carriers picked up the freight in jaurez and other
locations and delivered it to Texas or its direct customers.

Ryders understood that the main problem was the cross border and hence mainted 24/7 contacts with Cross border and their
Transport Management Centre (TMC).

Not only that the outsourced company Ryders also studied the location of philips customers, and the frieght volumes.

Based on the study done by Ryders, philips changed its primary distribution channel to that location and it reached 80 %
of its customers through this.

The process worked like this : Philips sent reciepts designed by Ryders to their Transportation centre before 48
hours of lead time. This allows Ryders to optimize the orders according to the best loading configuration and shipping
method.

Ryder used a software called a Optimizer for that . This software calculated the Loads , considered the shapes and sizes of
the products and then recommended the best possible configuration to use.

As for security, Ryder uses cameras, door alarms and security gaurds monitaring all exits and entrances.

The overall benifit for philips was that they came to know things they never knew. Ryders showed them the transportation cost
per product..

Ryders also helped Philips lessen their inventory cost , Inventory accuracy which was 80 percentile was now increased to 99
percentile with the help of stats shown by Ryders.
 

rosemarry2

MP Guru
Philips northern american department wanted to improve customer relationships and reduce costs with a more powerful and
managed logistics operation.
They decided to outsource all logistics. They needed a high end solution provider who would take care of everything ..


The challenges were :-

1.) Philips consumer electronic products have a short life span and it is hard to predict what is in more demand at what
time and in which location.

2.) Certain big products like big screen TV's are subject to strict loading rules and are very fragile.

3.) And nearly all products are high value which are easy to sell in the streets .

4.) Cross border transportations, customs and frieghts

Philips invited proposals to everyone with the above complications open to them .

The names were shortlisted and the contract was given to Ryder Systems.

Ryder systems recommended philips to close down few of its distribution centres and let it handle the distribution.

Ryder had long-standing relationships with customs department. Ryders carriers picked up the freight in jaurez and other
locations and delivered it to Texas or its direct customers.

Ryders understood that the main problem was the cross border and hence mainted 24/7 contacts with Cross border and their
Transport Management Centre (TMC).

Not only that the outsourced company Ryders also studied the location of philips customers, and the frieght volumes.

Based on the study done by Ryders, philips changed its primary distribution channel to that location and it reached 80 %
of its customers through this.

The process worked like this : Philips sent reciepts designed by Ryders to their Transportation centre before 48
hours of lead time. This allows Ryders to optimize the orders according to the best loading configuration and shipping
method.

Ryder used a software called a Optimizer for that . This software calculated the Loads , considered the shapes and sizes of
the products and then recommended the best possible configuration to use.

As for security, Ryder uses cameras, door alarms and security gaurds monitaring all exits and entrances.

The overall benifit for philips was that they came to know things they never knew. Ryders showed them the transportation cost
per product..

Ryders also helped Philips lessen their inventory cost , Inventory accuracy which was 80 percentile was now increased to 99
percentile with the help of stats shown by Ryders.
Hey Friend,

Here I am uploading Case Study of Three Multinationals - International Marketplace, so please download and check it.
 

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