The consumer products division of Ericsson, the Swedish telecommunications giant, found additional dollars to invest in its capital-intensive business by outsourcing inbound logistics and shifting responsibility for inventory management to vendors.
Service parts providers may offer central warehousing, repairs or merely quick delivery, but OEMs are finding their networks essential to their continued operations.
As Kodak's European business changed in response to economic union and various internal factors, the company needed a logistics solution that would provide greater flexibility and lower overhead costs at key facilities. It opted for outsourcing with a shared-use approach, a concept that was given an unusual and innovative twist in the U.K. with partner MSAS Global Logistics.
GTE's in-house recovery operation is so successful that it now handles reverse logistics services for other companies. Likewise, 3M turned to its own logistics and manufacturing groups to recover useable by-products - and lots of money.