The Strategic Benefits Of Logistics Alliances
In early 1990, American President Companies started double-stack container rail service from Woodhaven, Michigan to Ford Motor Company's auto assembly plant in Hermosillo, Mexico. APC coordinates all the information, transportation, and inventory handling necessary to pick up parts and components from vendors and sequence-load them into containers for delivery on a just-in-time basis to Hermosillo. The movement includes coordination over four railroads and with Mexican customs officials for delay-free clearance. At the plant, Ford has built a state-of-the-art stack train terminal to smooth the flow of sequenced parts into assembly operations. APC provides cranes and management to break down the containers. The partners collaborate to return containers to the United States carrying components produced in the Maquiladora region and specialized part racks.A warehouse service venture of Lever Brothers and Distribution Centers, Inc. is bearing fruit. DCI has built, staffed, and operates a high-tech dedicated distribution warehouse for the toiletries maker in Columbus, Ohio. The companies share the benefits and risks: if warehouse utilization falls below a certain point, Lever helps cover the overhead; in return, DCI shares the productivity benefits when utilization approaches full-capacity economies of scale. A similar arrangement exists between Lever Brothers and Dry Storage Corporation in Atlanta.Schneider National furnished initial computerized scheduling and electronic data interchange for 90 Minnesota Mining
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