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NEW GLOBAL LOGISTICS AGREEMENT IS BASED ON TWO-BUSINESS-DAY DELIVERY

NEW GLOBAL LOGISTICS AGREEMENT IS BASED ON TWO-BUSINESS-DAY DELIVERY
 SANTA CLARA, Calif., Oct. 23 /PRNewswire/ -- At a press conference here today National Semiconductor Corporation (NYSE: NSM) and Business Logistics Services (BLS), a division of Federal Express (NYSE: FDX), jointly announced an agreement that represents a radical redesign of National's global logistics process. A key element of this program is two-business day delivery of products to virtually all of National's customers throughout the world.
 The program results in major cost savings in inventory management and systems development for both National and its customers, and also provides National's customers with the confidence to implement true just-in-time manufacturing operations.
 "This agreement represents a quantum leap in global logistics that will significantly lower our customers' costs and inventory requirements," said Pat Brockett, corporate vice president, North American Division of National Semiconductor. "Reliable, time-definite deliveries are fundamental to real just-in-time manufacturing. They reduce the level of inventories our customers need at their sites, and significantly lower the level of inventory represented by products in transit, that customers carry on their books but cannot use. This improves cash flow for both the manufacturer and customer, and gives added flexibility in manufacturing operations," Brockett added.
 The new agreement becomes operational early in 1993 and uses BLS' central warehouse in Singapore near Changi airport, close to National's assembly plants in Southeast Asia.
 Currently, National's delivery cycles can range from 5 to 18 days to reach global customers. The new two-business day, time-definite program represents a major reduction of the cycle time from order to delivery of finished goods and eliminates the need for National to carry large amounts of inventory positioned within regional areas around the world.
 Robert P. May, president of Business Logistics Services, stated, "National has taken a leadership role by recognizing the advantages of integrated value-added logistics on a global basis. They are leveraging BLS' and Federal Express' worldwide capabilities and strengths to enhance their competitiveness in today's global economy. This long-term approach will give National Semiconductor the leading edge in global logistics, through BLS' quality-driven network, essential to compete in the 90s and beyond."
 The program will be phased into full operation over 18 months. Shipments will go though BLS' centralized warehouse in Singapore directly to National's customers throughout the world. The agreement between National Semiconductor and BLS has been developed over a two- year period and dramatically demonstrates recognition of an increasingly global economy in serving National's worldwide customer base.
 "This alliance is in line with our corporate strategy to focus on our core business and leverage the services of market leaders in areas outside our base competencies," said Pat Brockett. "It also allows National to maintain a clear leadership position in delivery of its products well into the next century."
 National Semiconductor designs, manufactures and markets high- performance semiconductor products. Headquartered in Santa Clara, the company is a global leader in mixed analog-and-digital technologies.
 Business Logistics Services, a division of Federal Express, headquartered in Memphis, Tenn., provides a wide range of value-added, integrated logistics and information systems services for companies in local and global markets. It operates facilities in the United States, Europe and Asia.
 -0- 10/23/92
 /CONTACT: Mary Ann McKay of National Semiconductor, 408-721-2646, or Sandra Munoz of Federal Express-BLS, 901-395-3891/
 (FDX NSM) CO: Business Logistics Services; National Semiconductor Corp. ST: Tennessee, California IN: SU:


SM-LD -- NY073 -- 4383 10/23/92 17:44 EDT
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Publication:PR Newswire
Date:Oct 23, 1992
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