Flexibility and efficiency cuts inventory costs

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Toshiba Electronics Europe (TEE) has implemented two new transport and warehousing agreements that further streamline the company’s European logistics operations. The new arrangements, with DHL Worldwide Express and Caterpillar Logistics Services, combine improved flexibility and efficiency with cost savings for the inventory management and European delivery of Toshiba’s semiconductor products.

Under the terms of the new agreements DHL is managing the European transport of Toshiba Electronics products ranging from memory devices and microprocessors to power semiconductors, LEDs, and display. Caterpillar Logistics Services, a wholly-owned subsidiary of Caterpillar Inc, is providing warehousing and operations management services, information technology services and value-added services (such as transport, documentation, claims, customs/Intrastat/VAT reporting and office helpdesk services) for these products including storage space of 2,270sq m at its warehousing facility in Bornem, Belgium.

The new arrangements replace a previous agreement that Toshiba Electronics Europe put in place with DHL Worldwide Express in 1998, under which the global carrier subcontracted warehousing to Caterpillar Logistics Services. Toshiba’s decision to sign two new agreements follows an extensive period of performance benchmarking and assessment in line with the company’s commitment to the Six Sigma measurement-based quality methodology. The benchmarking project was launched in 2003 by Alfred Børsig, Toshiba Electronics Europe’s vice president of business operations.

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