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Avaya Selects Singapore as Asia Pacific Supply Chain Management Hub

06-12-2008

Avaya established a finished goods distribution center in Singapore as part of its new supply chain management strategy for Asia Pacific.

SINGAPORE - Avaya, a leading global provider of business communications applications, software and services, today announced that it has established a finished goods distribution center in Singapore as part of its new supply chain management strategy for Asia Pacific. The company estimates that the first phase will see an annual turnover of over 500 tons of IT equipment worth over $100 million out of Singapore.

 

As part of the new strategy, all Avaya products manufactured in Asia Pacific will be consolidated and shipped to regional customers and BusinessPartners from the island nation. Avaya's manufacturing facilities located in China, Thailand and Indonesia serve the region including Australia, China, India, South East Asia, Korea and Japan. The company expects cost savings of up to 80 percent and a reduction in lead time for delivery of products from 14 days to as short as two days for most of the region.

 

"With service as the cornerstone of Avaya's corporate culture, being close to our customers was an important business consideration in establishing our supply chain management center in Singapore. We are now able to deliver real-time support to our BusinessPartners and respond to customers by having the right product available at the right time," said Mark Leigh, President, Avaya Asia Pacific.

 

The three main drivers for choosing Singapore as the hub were cost savings, shorter delivery times and close proximity to customers and BusinessPartners. Avaya is now able to respond more quickly to orders from BusinessPartners and pass on these cost savings as freight costs are significantly reduced.

 

Other locations that Avaya considered include Hong Kong and Malaysia. Singapore's strategic location in Asia and its world-class infrastructure were key factors for the company in establishing its regional supply chain management center here. In addition, the hub's close proximity to Singapore's award-winning Changi Airport means Avaya is now able to fulfill orders to customers and BusinessPartners faster than ever before.

 

Linda Sein, Executive Director, InfoComms & Media, Singapore Economic Development Board (EDB), said, "The EDB is pleased to note that Avaya's regional distribution centre will add to the company's existing activities in Singapore, which include its Asia-Pacific Headquarters, R&D and shared services. Singapore's central location and excellent logistics capabilities give network equipment providers like Avaya a strategic advantage to expand further into the growing telecoms markets of Asia."

 

Leading global integrated logistics service provider DB Schenker will manage the finished goods distribution center for Avaya in Singapore. The distribution center is housed at DB Schenker Megahub, which is the largest integrated freight and logistics facility in the Airport Logistics Park of Singapore (ALPS). Its strategic location within the Free Trade Zone translates to vital business advantages for Avaya such as minimal customs formalities, tax suspension, and reduced touch points. This is in addition to the freight savings, shorter transportation lead time, lower inventory holding costs and improved service levels enjoyed by Avaya and its BusinessPartners. Outsourcing the warehouse operations allows Avaya to focus on its core competencies, and to leverage DB Schenker’s global expertise in logistics and transportation.

 

Darren Wedding, Vice President Logistics/Supply Chain Management at Schenker Asia Pacific, said, "We welcome this opportunity to be Avaya's regional logistics partner, to create a leaner, more responsive supply chain environment, and to bring an enhanced overall customer experience to Avaya's customer. As with our past successes in providing solutions for the dynamic needs of the telecommunications and electronics industry, I am confident our partnership will create greater synergies to further innovate Avaya's business models and processes, with proactive supply chain strategies."

 

About Avaya
Avaya delivers Intelligent Communications solutions that help companies transform their businesses to achieve marketplace advantage. More than 1 million businesses worldwide, including more than 90 percent of the FORTUNE 500®, use Avaya solutions for IP Telephony, Unified Communications, Contact Centers and Communications-Enabled Business Processes. Avaya Global Services provides comprehensive service and support for companies, small to large. For more information visit the Avaya Web site, www.avaya.com

 

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