Increasing Speed to Market and Supply Chain Efficiency, Globally | Electronics

10/15/2020 RRD

Development of an in-region postponement solution drives efficiencies across business' entire supply chain

CHALLENGE

This international mobile phone and consumer electronics business that designs, manufactures, markets, and sells mobile phones and consumer electronic products in partnership with global brands. The company holds global licenses from a number of well-known brands and has a growing portfolio of connected device products covering the rugged, lifestyle and outdoor categories.

The company imported their rugged phones direct from multiple Chinese original device manufacturers (ODMs), which created a number of difficulties including:

Forecasting multiple country configurations to be made in China for delivery to EMEA resulted in high levels of stock with additional rework and expedite costs
Limited flexibility to support unforecasted demand in the region resulted in lost sales
Protracted ramp-up and ramp-down of products resulted in discounted pricing at the end of the product cycle
Shipping fully packaged products straight from Asia into Europe meant there was a low density per pallet, which resulted in high logistics and storage costs
Ordering finished goods from multiple ODMs in China, resulted in limited control of quality and branding of products

SOLUTION

RRD analyzed the company’s supply network and developed an in-region postponement solution to drive efficiencies across the entire supply chain. This solution involved developing packaging to enable shipment of product in a high-density bulk configuration and leveraging RRD’s European platform of vertically integrated design, printing, packaging, and kitting resources to develop a more flexible demand-driven supply chain.

Once a demand signal is received, the phones are configured, tested, packaged, and distributed to the operators in-region. Key aspects of the solution included:

Moving printing, packaging, and device configuration and assembly to a centralized European distribution center — eliminating the inefficiencies created by shipping finished goods for the European market direct from China
Structural and graphic design of all packaging for production in Europe — reducing total cost and improving product quality
Configuration and pack-out of the phones and firmware upload
Serial number/ESN tracking and management of all warehousing and distribution activities

RESULTS

By working with RRD Supply Chain Solutions, the company was better positioned to support their customers in EMEA. RRD’s in-region postponement model allows the company’s rugged phones to be kitted and packaged close to the point of consumption in RRD’s Brno facility (Czech Republic).

The key benefits of the solution include:

Significant reductions in a number of areas, including freight and storage costs, outbound transport distances, carbon footprint of the supply chain, device production costs (by sourcing from multiple product ODMs), and finished goods inventory
Greater control over product branding and a higher standard of finished product screening before being shipped to end customers
Enhanced supply chain visibility as well as increased responsiveness to in-region market demand
Better positioning to support last-minute sales opportunities as well as offer operators increased levels of customization