Sequent selects SonicAir for strategic logistics support.
"We looked for a company that could provide a full range of logistics services to meet our service objectives and customer obligations," said Don Ross, logistics and services manager of Sequent(R) American Operations. "SonicAir was the company that could deliver."
The first step to develop Sequent's logistics operations was to determine where its spare parts would be geographically warehoused. SonicAir consultants conducted a transit and inventory analysis to determine what stocking locations would best service Sequents's customers while maximizing the use of its inventory.
Sequent collected and supplied customer information to the consultants who analyzed the information with SonicAir's proprietary software. The following factors were taken into consideration: parts needing warehousing, time-sensitivity of parts, current inventory and transportation costs, downtime cost per hour, location of customer installations and locations of the vendor's distribution centers.
Sequent is using 32 strategically-placed SonicAir Field Support Bank(TM) (FSB) warehouses in the United States and has plans for adding four FSB warehouses in Canada. Spare parts are transported from these warehouses to customers immediately on request.
"Having a strategic service plan and real-time delivery capabilities enables Sequent to meet or exceed customer expectations, which in turn enhances customer satisfaction," said Ross.
The inventory management system includes barcoding, radio frequency technology and hand-held wireless devices, giving Sequent access to instant real-time updating of inventory, cross docking and dispatch, error-free picking and verification, and a tracking system which allows instant determination of any part's whereabouts in the pipeline.
Since Sequent is on-line with electronic data interchange (EDI), it is able to access this type of information instantly via the computer, eliminating any third-party phone communications. The result is more accurate information in a time-efficient manner.
As spare parts are taken out of the inventory, they are scanned which automatically triggers the replenishment system. This assures the maintenance of optimal stock levels in any given location. To minimize the overall inventory level over time, the inventory will be redistributed based on cost of part, expected usage, freight cost, geographical consideration, and customer-specific service requirements.
"Through the partnership with SonicAir, we project that our company will significantly reduce inventory and generate a stronger return on assets," said Steve Aleshirre, director of customer service for Sequent American Operations.
"We are committed to improve our customers' logistics performance," said Ray Thurston, president and chief executive officer of SonicAir. "We have one main goal for our customers; to increase their profitability."
Sequent Computer Systems Inc., based in Beaverton, Ore., is a leading architect and provider of open client/server systems for business computing and is the worldwide leader in large-scale UNIX systems (selling at $800,000 to $2 million), with 35 percent of the market in 1994, according to CI/Infocorp data.
Sequent provides professional consulting, educational and support services, and develops scalable multiprocessing computing systems for on-line transaction processing, decision support and business communications. The World Wide Web address for Sequent On-Line is http://www.sequent.com/.
SonicAir provides logistics planning and consulting, coordination and integration, delivery and warehousing. The company commands 40 percent of the same-day delivery market. SonicAir is headquartered in Scottsdale, and operates more than 79 domestic and international strategic stocking locations. For more information about SonicAir, please call 800/528-6052. -0-
NOTE: Sequent is a registered trademark of Sequent Computer Systems Inc.
CONTACT: The Martz Agency, Scottsdale
Lisa Wilson, 602/998-3154
Sequent Computer Systems Inc., Beaverton
Kathi VanderZanden, 503/626-5700
LeeAnne French, 503/245-0905