Manufacturing companies all have logistics problems. These days,
those are most often fixed through a combination of recognizing where the
logjams are located, and applying a generally high-tech solution. The ten
companies profiled below all demonstrate this combination.
RCA/Thomson Consumer Electronics
RCA is a well-known name in consumer electronics, and particularly
televisions from palm-sized to room-size, plus other audio-video equipment.
Its Bloomington, Indiana, its Thomson Consumer Electronics plant ships
about 500,000 orders each year (15,000 products a day rolling off assembly
lines at Bloomington), but it does so with a patchwork of 25 separate
freight carriers globally (15 in the U.S.), which could be a logistics
nightmare; while it is preferable to push down shipping logistics to a
carrier (as many companies do with UPS, using not only their freight
service but their shipment tracking, etc.), RCA was manually entering bills
of lading for every shipment. In a highly competitive market, it was
imperative that orders reach retailers in a timely manner in order not to
lose market share. Each bill-of-lading contains important product and
shipment information such as product quantity and serial numbers, purchase
order numbers and destination addresses that accompany the order as it
travels from Thomson through the carriers' network of hub and spoke
distribution facilities to the end-destination consignees. Not only were
these manually key-punched before the order left the loading dock; they
were manually key-punched at every stop in the shipping company's hub-and-
spoke distribution network. [1]
This process was both time-consuming and prone to errors. Even the
best keypunch operator's average five errors per hundred, resulting in
orders misplaced, delayed, or shipped to the wrong location. Each error
costs about $100 dollars in customize service time, re-keypunching,
retrievin...