Combining materials management with an optimized logistics solution

case study spot swatchesCustomer Challenge:

Our client, one of the largest producers of outdoor and athletic wear faced challenges when four of its Vietnam-based OEM’s consistently ran short on a key production material, resulting in production and product delays. Material lead-time for the item was six weeks, so by the time an OEM thought to order from the raw material supplier, it was often too little too late.

Our Solution:

  • Volume price negotiations
  • Reduced raw material lead times
  • Planned & assured capacities/secured supply chain
  • Multi-user warehouse (Hanoi)
  • Materials management
  • Ocean transportation
  • Management reporting

PDFbutton

Customer Benefit:

Order lead times for the OEM factories were reduced from 45 days to 10 days. The customer saw a marked increase in supply consistency, as the OEMs no longer had difficulty reordering in time to meet demand fluctuations. OIA was able to leverage the long-ranging volume demand from the four OEMs in negotiations with the raw material supplier. The brand client is now able to enjoy transparency to OEM cost for the raw material (via OIA), OIA’s ability to buy in FCL loads and single-point volume buy negotiations with the supplier has resulted in over $1 million in annualized savings.

For a customized solution to meet your business needs, contact us at:
1-855-SHIP OIA
or
email us »