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* Inbound transportation was the second area of 3PL involvement. MicronPC decided to purchase all goods at or near the suppliers’ production facilities (e.g., ex works). Since they would have complete control over the flow of goods to the SLCs, icronPC signed strategic transportation agreements with ocean providers to manage the process. These providers work with the suppliers, freight forwarders, and MicronPC to establish a tightly linked inbound delivery network. Finally, MicronPC partnered with United Parcel Service (UPS) to deliver finished products to customers. UPS set up and ran the outbound shipping operation at MicronPC’s Nampa, Idaho manufacturing facility. Through the use of truckload pool distribution to major hubs and local UPS delivery, MicronPC can offer low cost 2-day or 3-day UPS ground service to the vast majority of its customers. Currently, UPS delivers 85% of all PC shipments and lessthan-truckload carriers deliver the other 15% to retailers, educational institutions, and other large organizations. * In addition, UPS established a merge in-transit operation in Louisville, Kentucky to reduce MicronPC’s delivery costs. Bulky, standard items such as monitors and some speaker systems are held in Louisville and added to desktop PC orders being delivered from Nampa to customers in the eastern portion of the U.S. As an additional benefit, MicronPC never takes ownership of the inventory in Louisville until the products are sold and removed from inventory for delivery. Hence, they benefit from a virtual inventory that is consigned by suppliers to the UPS facility. * The Micron PC - MMI Alliance * Results of the Strategic Initiative Throughout the supply chain initiative, MicronPC tracked their progress via key performance metrics (e.g., product lead time, cash conversion cycles, inventory turnover, etc.). As the key components were implemented and stabilized, performance and customer service improved. In fact, the shift in priorities and processes allo
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