C.H. Robinson operates as the MBU’s logistics department and functions
as an extension of Toshiba’s team. Toshiba leadership describes the
collaborative outsource relationship as additive, not subtractive.
“In a world that’s automated, my account manager gives the personal
touch. You can have the best of both worlds—plenty of tools to reach out
and get the information you need plus personal attention. In a nutshell,
that makes a big difference for a vendor,” said Rita Medley, project
management and commissioning manager, Toshiba MBU.
C.H. Robinson identifies continuous improvement strategies and works
collaboratively with Toshiba to implement actions to improve their
operations. In fact, Toshiba adopted several C.H. Robinson best practices,
including mirroring the onboarding process for their customer contacts and
setting up key account managers to provide oversight, accountability, and
communication between Toshiba and customers.
Toshiba wanted assistance to improve efficiencies with regional distribution
centers (RDCs), including optimizing shipments and using best practices to
lower costs. C.H. Robinson’s implementation team recommended the best
locations for Toshiba’s RDCs and analyzed inventory turns. C.H. Robinson
ran scenarios to determine the best locations for DCs based on lane history
and Toshiba’s customer base. From implementing crossdocking to initiating
electronic integration, such as Electronic Data Interchange (EDI),
C.H. Robinson’s processes and technology helped Toshiba be more efficient
and gain global visibility to total landed costs. The improvements allowed
for better business planning and insight into setting their market price.
CONTINUOUS IMPROVEMENT: SUPPLY CHAIN INNOVATIONS
After a full year, Toshiba leadership challenged C.H. Robinson to further
reduce Toshiba MBU logistics costs. The account management team
conducts regular business reviews to evaluate progress and suggest
additional efficiencies or cost reduction opportunities.
Overall, Toshiba’s MBU is moving in a direction where they are outpacing
their competition and increasing speed to market. In addition to the MBU,
C.H. Robinson now services Toshiba’s hybrid electric vehicle (HEV)
business unit and their adjustable speed drive business unit. Future
opportunities on the table include inventory analysis, network design, and
other logistics strategies that could help Toshiba reduce their supply chain
expenditures an additional $500,000 to $700,000.
“I think businesses need to understand the importance of giving equal
value to cost and service. We didn’t allow a dollar to be placed over the
value of service. With C.H. Robinson’s trusted people and continuous
improvement, we now get excellent service and we know our true cost,”
emphasized Bugbee.