Wednesday, June 18, 2008

AVAYA

Business communication vendor, Avaya, has built a finished goods distribution centre in Singapore as part of its new supply chain management strategy for Asia Pacific.
According to the telephony vendor, the first phase of the centre is estimated to see an annual turnover of over 500 tones of IT equipment worth around USD$100 million out of Singapore.Tim Barnes, director of operations APAC at Avaya told CRN, the centre will help Avaya to deliver products to business partners and customers across Asia Pacific, including Australia, much quicker than before. “We are expecting lead time for product delivery to go down from 14 days to as short as two days for most of the region. Shorter lead time translates to significantly reduced freight costs for our business partners. We foresee cost savings of over 80 per cent,” he said.According to Barnes, the centre is located at the Airport Logistics Park of Singapore and close to the Changi Airport - its location is in a Free Trade Zone – which ensures cost savings through tax benefits. “From our manufacturing facilities in China, Thailand and Indonesia, our products will now be consolidated and shipped from Singapore to our regional business partners and customers. This will include our customers and channel partners in Australia. Inbound traffic will be through ship freight while delivery to customers and business partners will be by air,” he said.Barnes claimed the new centre will help with faster product delivery times to Avaya’s channel partners and distributors. “We are expecting lead time for product delivery to go down from 14 days to as short as two days for most of the region. Shorter lead time translates to significantly reduced freight costs for our business partners,” he said.Global integrated logistics service provider DB Schenker will manage the finished goods distribution center for Avaya in Singapore, said Barnes. The distribution center is housed at DB Schenker Megahub, which is one of the largest integrated freight and logistics facility in the Airport Logistics Park of Singapore (ALPS).

Cheers

GS

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