supply chain solution helps drive growth

arvato and Toshiba work in partnership to improve distribution service

“Together, Toshiba and arvato have developed a supply chain solution that has streamlined our logistics operation, reduced distribution costs and led to an expansion of our business. arvato really understands the idea of working in partnership. We look forward to continuing our current successful relationship and bringing in more innovations that will enhance our service to customers and drive future growth of our business in the UK.”

Richard Taylor, Head of Supply Chain, Toshiba UK

Partners since 2008

challenge: to supply a service that supports the brand

Toshiba, a world leader and innovator in pioneering high technology, expanded its existing European relationship with arvato to the UK in 2008. The initial non-exclusive agreement was for arvato to distribute laptops to key retailers across the UK.

In 2010, Toshiba decided to outsource its UK distribution infrastructure for laptops and other products such as camcorders, hard drives, carry cases, batteries and USB memory sticks. Toshiba needed a flexible solution that would take into account existing processes, guarantee a seamless transition and effectively manage peaks in demand. Ultimately, Toshiba wanted to reduce its costs while maintaining a high level of service.

solution: to manage whole distribution process

arvato combined Toshiba’s existing processes with best practice to devise a full logistics solution covering pick, pack and ship, reverse logistics, value added services and transport management.

Distribution of Toshiba’s products was seamlessly transferred from its own facility to arvato’s Hams Hall distribution centre. By integrating the solution into its proven infrastructure, arvato was able to reduce costs while maintaining service levels.

The new supply chain solution has effectively managed record levels of products and peak periods, as demand for Toshiba’s products in the UK continues to grow.

successes: delivered record shipments

• Seamless transition of service completed as demonstrated by uninterrupted service to Toshiba's channel partners and retailers
• Flexibility to deal with peaks in demand up to 500% of average throughput
• Scalable operation to achieve record monthly shipments with up to 20% year on year growth
• Consistently delivered service level agreements across the relationship
• Provided significant  cost savings as well as efficiency gains, totalling 10% during FY2009

services: complete, fully managed service

• Full, pick, pack and ship service
• Value added services including repacking, labelling and the ability to bundle products
• Reverse logistics
• Freight management
• Product inspection and analysis
• Special projects for customers or campaigns
• High degree of security and protection of the product