Between 1990 & 2002 Motorola based its production facility in Flensburg, Germany. Their reliance on a traditional transport provider meant they often experienced delays in the delivery of supplies. These delays resulted in highly expensive penalty clauses of up to £10,000 as well as a £5,000 per hour cost on lost production time. Motorola came to Prestige establish a logistics solution that would facilitate the effective inventory management and distribution of supplies from the UK to Germany. They were looking for a solution that would reduce the hefty penalties and improve overall cost efficiencies within their production.
Prestige Global Logistics applied a team approach to addressing the situation. They became an integral part of their supply chain and worked on improving the following efficiencies for their clients:
- They worked with the production and buying teams within the German production plant and recommended a double manned trucking solution that allowed for non-stop delivery to Germany from the UK & Scotland.
- They were able to assess production requirements and assess which mode of distribution was most suitable for various elements of inventory.
- On a real time basis Prestige could advice the client on outbound consignments and their expected delivery times. This allowed production to be managed on a daily basis to work with the components they knew were in supply.
Prestige Global Logistics were able to supply a dedicated and integral service to Motorola and as such worked with them for over 12 years until production was moved to China in 2002. The flawless inventory management and distribution managed by Prestige meant a decrease in production penalties by 80% for Motorola.