Electronics companies are increasingly partnering with logistics providers to improve delivery services and assist in supply chain management. ON Semiconductor this week announced it has opened a new global distribution hub located in Narita, Japan, in partnership with DHL. The Japan Global Distribution Center is more than ten times bigger than the old facility, ON said in a release, and enables upgraded world-class supply chain services to customers along with logistic networks in Singapore, Shanghai and Manila.
Globalization has made the electronics supply chain more complex for component makers and OEMs that want to maintain a consistent level of customer service. For example, the ON Semiconductor Japan GDC is tasked with annually delivering upwards of 44 billion finished products to customers worldwide. The Japan GDC is one of four distribution centers operated by ON Semiconductor in partnership with DHL. The other facilities are ON Semiconductor’s Global Distribution Centers (GDC’s) located in Singapore, Shanghai and Manila. The Singapore GDC was expanded in 2011 to 95,000 square feet and logistically handles approximately half of ON Semiconductor’s annual shipments. An expansion of the Manila GDC to 65,000 square feet with two-tiered storage was completed earlier this year.
“The Japan Global Distribution Center (JGDC) greatly enhances ON Semiconductor’s operational capabilities in Japan,” said Brent Wilson, senior vice president of Global Supply Chain Operations for ON Semiconductor. “The new and expanded Narita operations center connects seamlessly to the company’s world-class global logistics network, providing improved capabilities in terms of service, quality, and responsiveness to our growing Japanese customer base. Narita is an ideal location for this distribution operation because it offers a centralized location with close proximity to a large international airport, our customers, and to our manufacturing, assembly and test operations located in Japan.”
“At DHL, we are committed to providing best-in-class logistical solutions for the semiconductor industry in Japan and across the globe,” said Victor Mok, CEO for North Asia DHL Supply Chain. “We recognize that the Japan market requires innovative and comprehensive strategies to optimize operational efficiency. We are pleased to be partnering with ON Semiconductor as both our companies look to grow our presence in the Japanese market.”
The new 36,000-square-foot Japan GDC is dedicated to shipping finished goods to ON Semiconductor’s Japan-based customers. It serves as a local hub for the consolidation and delivery of finished products produced both inside and outside of Japan to all customers located within the country. The new facility features DHL’s state-of-the-art logistics processes, a two-tiered mezzanine storage structure, and boasts a “ship through” capacity of four million units per day. ON Semiconductor’s previous Japan distribution operations were housed in a 3,000-square-foot facility in both Gunma and Narita combined.
Noboru Matsuoka, President and Representative Director of DHL Supply Chain Japan, said, “DHL’s expertise in the technology sector is crucial in creating the right solution for ON Semiconductor. We are proud to work with such a leading semiconductor company and share its commitment to delivering their innovative devices. With this partnership, we are confident in our ability to take on the growth path and we will continue to better serve customers exceeding their expectations.”
Mr. Wilson added: “We are grateful for the local support provided to us during the site-selection, planning and construction of the Narita facility. This distribution center is an important investment in the future of ON Semiconductor in Japan and represents a tremendous upgrade in logistics capabilities for us.”
“ON Semiconductor is committed to continually investing in the ongoing improvement of its world-class supply chain operations. We see these investments as crucial to keep pace with our growing business and the needs of our global customers,” said Mr. Wilson. “In partnership with DHL, we have successfully expanded our global distribution operations and streamlined our logistics network. Supply chain capabilities are increasing seen as a differentiating characteristic by our customers, and our close collaboration with DHL provides a competitive advantage in the marketplace.”