|Departments: Program Management/Supply Chain Management||Industry: Communications|
A major communications OEM contracted with KAL Manufacturing to build a control device used in many different locations throughout the United States and Europe. Initially they ordered a large number of these electro-mechanical assemblies and had them delivered to a distribution warehouse in Mexico. When an end user ordered the assembly, the OEM shipped it from the warehouse.
KAL Manufacturing proposed to produce and drop ship the assemblies directly to the end user on a daily basis to avoid long shipping delays and greatly reduce shipping costs.
This solution resulted in a 50% savings in shipping costs for our customer and a maximum of four working days for the end customer to receive their assembly.