Sequent selects SonicAir for strategic logistics support.SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Nov. 6, 1995--SonicAir(TM), a wholly owned subsidiary Wholly Owned Subsidiary
A subsidiary whose parent company owns 100% of its common stock.
In other words, the parent company owns the company outright and there are no minority owners. of United Parcel Service United Parcel Service, Inc. (NYSE: UPS), commonly referred to as UPS, is the world's largest package delivery company, delivering more than 15 million packages a day to 6.1 million customers in over 200 countries and territories around the world. (UPS), has announced it was selected by Sequent Computer Systems Inc. (NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :SQNT SQNT Sequent Computer Systems (stock symbol) ), a leading provider of open client/server systems for large-scale commercial computer applications in on-line transaction processing (database) On-Line Transaction Processing - (OLTP) The processing of transactions by computers in real time. , decision support and business communications, as its integrated logistics service company.
"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 Don Ross may refer to:
The first step to develop Sequent's logistics operations was to determine where its spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used.
Spare parts are also called “spares. 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 (FrontSide Bus) See system bus.
FSB - front side bus ) 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 See EDI.
(application, communications) electronic data interchange - (EDI) The exchange of standardised document forms between computer systems for business use. EDI is part of electronic commerce. (EDI (Electronic Data Interchange) The electronic communication of business transactions, such as orders, confirmations and invoices, between organizations. Third parties provide EDI services that enable organizations with different equipment to connect. ), 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 Return on assets (ROA)
Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/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 support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other 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