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For Immediate release
Ref. NRE20020205
KOM International Delivers Record Logistics Savings to Mexican Pharmaceuticals Manufacturer
MONTREAL, Quebec, Canada, February 5, 2002 - KOM International Inc., a global leader in supply chain consulting, today announced that it has successfully finalized a consulting project that has yielded an annual logistics cost reduction of over $U.S. 5 million per annum, a 3- month return on investment, for a large Mexican pharmaceuticals manufacturer and distributor.
Alan Taliaferro, Senior Partner responsible for KOM International's Latin American operations, comments "The project involved a complete overhaul of our client's supply chain from soup to nuts, and the results were greater than our forecasted savings. Through innovative cross docking strategies and the implementation of logistics technologies, our client was able to strengthen its competitive position by improving service levels at a significantly lower cost".
KOM International initially studied the client's supply chain infrastructure and determined that the company had significant customer service issues, despite operating 19 distribution facilities with excessive inventory levels throughout the country. "We knew that our client could do a better job servicing customers if they closed some facilities, converted regional warehouses to cross dock facilities, and reduced inventory levels throughout the distribution network", according to Taliaferro. After the executive management team agreed to the changes, KOM International assisted the client in transforming their supply chain.
The
project involved a $U.S. 1.4 million capital investment and has, so far yielded
$U.S. 5.3 million in annual savings, a 3-month return on investment. The savings
resulted from a 40% reduction in warehouse operating costs, 30% reduction
in transportation costs, 30% reduction in inventory, and 70% reduction in
real estate investments. Through the use of logistics technologies, including
a new warehouse management system and a dynamic routing system, the client
has significantly improved service levels through improved fill rates and
on-time deliveries.
About
KOM International
KOM
International is a global leader in supply chain consulting services with
over 45 years of experience and 3,600 projects successfully completed. KOM
International provides innovative and proven supply chain consulting services
that enable companies around the world to manage their logistics activities
more effectively. KOM International has worked with many of today's Fortune
500 companies, across a wide spectrum of industry sectors, to deliver world-class
customer service levels at the lowest possible operating cost. KOM International's
core competencies include: supply chain strategy, distribution center design
and layout, improving existing distribution operations, supply chain technology
solution selection and implementation, inventory management, and warehouse
and transportation management consulting.
Contact:
For more information about KOM International, please contact us at 514-849-4000 or visit us at our website at www.komintl.com.
Program Manager: Denise Beamish
Copyright © 2000. KOM International, Inc. All rights reserved. Disclaimer.