Operational Costs Reduced for Multinational Developer | Technology
3/11/2021 RRD
RRD’s supply chain expertise helps semiconductor company move EMEA operations closer to customers and drive success
CHALLENGE
A multinational company that develops and manufactures computer memory and data storage technologies used in data centers, personal computers, and networks was looking to lower the costs of their Europe, Middle East, and Africa (EMEA) operations.
They had been distributing products from their facility in Scotland, but faced a number of challenges:
- Currently manufacturing in a high-cost region, comparatively speaking
- Expensive transportation costs to mainland Europe
- Additional import and export tax and VAT implications due to Brexit
In the highly competitive and evolving semiconductor industry, a suboptimal supply chain can significantly impact business performance.
SOLUTION
To help the client overcome their challenges and reduce costs, RRD developed a solution that included:
- Moving distribution to RRD Brno, Czech Republic had a number of advantages, including lower costs, closer proximity to non-UK end customers, and avoiding the impact of Brexit.
- Managing print and packaging operations using RRD’s vertically integrated European platform
- Working remotely with the company's Enterprise Resource Planning (ERP) system to provide a high level of flexibility
- Managing kitting, packaging, and fulfillment of products for B2B and B2C channels
RESULTS
The client decided to close its UK facility and work with RRD — its first outsourcing partner for EMEA. Leaning on RRD’s considerable supply chain experience during the transition period, the client was now able to reduce overall supply chain, print, and packaging costs and complexities. Additionally, its European supply chain became more flexible and was able to adapt to seasonal changes in demand and increase speed-to-market.