Avaya selects Singapore as Asia Pacific supply chain management hub
(Business News, 19 Jun 2008 )
Avaya 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 tonnes of IT equipment worth over USD100 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痴 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 per cent and a reduction in lead time for delivery of products from 14 days to as short as two days for most of the region.
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痴 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.
