Penske Logistics Case: Elevating Distribution in Consumer Electronics
Maximizing distribution and inventory efficiency to meet growth
Founded in 1947, this company is a world leader in consumer electronics and technology products. Present on five continents, this multinational company owns over 140 subsidiaries in 53 countries and employs around 180,000 people.
With operations in Brazil since 1996, the company produces locally most of its extensive range of electrical devices and electronics sold in Brazil. Due to its increasing sales and market growth in recent years, its logistics process became obsolete; its warehouses were too small and its distribution management systems were too inefficient to cover the complex geographical structure of Brazil.
To support the customer's sustained growth in Brazil Penske Logistics leveraged its wide experience in the electronics sector. Penske developed flexible and innovative customized solutions for storage management and agile distribution of both household white goods appliances such as refrigerators and microwave ovens as well as brown goods such as TVs, monitors and other image and audio devices of the company.
- Transfer 500, 40-foot shipping containers to a new warehouse in a short time;
- Installation in warehouses greater than the local market standard dimensions;
- Logistics intelligence to expand the geographical distribution of the Brazilian distribution centers;
- Improve inventory control of all white and brown goods.
Penske Logistics Solutions - Electronics
- Transfer goods to a temporary warehouse located in the region of Sao Paulo for one year;
- Evaluate the logistics scenario to install three warehouses located in different geographical areas to supply consumer markets faster;
- Establish and construct three customized warehouses (total 87,000 m3) including receipt, storage and shipment of goods management;
- Develop a new logistics operating technology system for the company, ensuring greater visibility of the supply chain and processes;
- Install and set up an advanced Warehouse Management System (WMS) software program to better control operations and make them more flexible and efficient;
- Evaluate and correct field returns (failures, return to stock, distortion);
- Evaluate and improve the project to reduce costs.
This project was deployed over one month only. Penske Logistics met all the emergency needs of its client without compromising the quality and safety of its logistics operations.
Penske's team ensures the flow of operations at the three distribution centers, which totals 87,000 m3, ensuring top quality levels. The daily shipping capacity of the distribution centers is 2,300 m3;. On average, 35,000 m3; of goods are shipped every month.
By updating the customer's inventory management system, Penske helped the customer regain full control over the entry and exit of products. Inventory loss was reduced to virtually to zero. Penske's work also helped the customer gain greater transparency into its logistics processes through exclusive reports.