Samsung Electronics Co. Ltd., a core division of Samsung Corp., has awarded BAX Global a major contract to handle logistics and transportation services in both North and South East Asia.
The contract is part of Samsung's new global streamlining program called "1C1B" - one contact, one bill. The program has already been rolled out in North America and Europe, consolidating the business of 14 and six of its third-party logistics providers (3PLs) into two and one, respectively.
The 1C1B contract awards BAX as the sole 3PL for Samsung's semiconductor business unit until 2005 in Asia. To accomplish "one contact, one bill," Samsung combined the business previously handled by nine 3PLs in North Asia and at least two major 3PLs in South East Asia.
The benefits Samsung sees through its "1C1B" program include shorter logistics lead times, standardized transportation units, simplified billing, seamless delivery from headquarters to destination, reduced cost and more thorough and accurate inventory tracking.