Fender Musical Instruments
Fender finds current and future savings through improved logistics.
Download as PDFThe Situation
Fender Musical Instruments Europe was facing several key distribution and logistics issues. The company’s existing logistics cost structure, particularly in the transportation area, was extremely high, resulting in costs that exceeded budget. In addition, FMIE was looking to improve managerial control of the distribution process.
This situation had led FMIE to re–examine its European distribution network in an effort to find an alternative that would reduce costs for supply chain processes such as logistics control, inbound transport, value–added logistics, warehousing and physical distribution, while maintaining competitive service levels. The existing network included a company–owned warehouse in London, which handled the strings, parts and accessories business, and an outsourced finished–goods warehouse in the Netherlands, which supplied guitars and amplifiers.
Future flexibility was also an important consideration, as FMIE continues to aggressively grow through acquisition and expand into new markets such as Eastern Europe.
