UPS 2007 Annual Report Download - page 13

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TH E CH ALLEN GE: Nikon needed to get digital cameras
into customers’ hands faster and with a greater degree
of predictability. Before turning to UPS, the company
brought its freight by air or ocean into Los Angeles,
where it was sent to a third-party vendor for customer-
specifi c packaging. Days or weeks later, the vendor
would send the cameras to the Nikon distribution
center for processing and shipping to retail stores
or Latin American distributors.
TH E SOLUTIO N : UPS picks up the freight in Asia
and fl ies it to the United States, clearing it through
customs before it hits the ground. UPS then takes the
shipment to its Louisville facility, where it is stocked
or put into customer-specifi c packaging and shipped
out. M ost of Nikon’s cameras are manufactured in
Asia, according to Arnold Kamen, vice president of
operations, who oversees activities within the photo
and instrument divisions. He said the process is faster
and more predict able with the UPS integrated supply
chain. “ We know exactly what is coming in and when.”
TH E RESULTS: In addition to a faster, more effi cient
supply chain, Kamen pointed out the importance of
having access to timely information about a shipment.
This allows them to handle exceptions quickly and
to re-route shipments in transit if necessary.
THE NIKON STORY
focusing on distribution
In the fast-paced world of digital cameras, a supply chain
can provide a desired competitive advantage. That’s why
Nikon turned to UPS for help with distribution.
11