Customer Success Story: Maxim Integrated Products
"Agistix enabled our company to reduce shipping costs by more than 28 percent in less than three months. Our shareholders, customers and suppliers are all extremely impressed. I believe that any company seeking to gain leverage in the global shipping marketplace should look first to Agistix."
- Sam Berman, Senior Manager of Global Logistics, Maxim Integrated Products
Company Profile
With 2005 net revenues of more than $1.6 billion, Maxim Integrated Products is a multinational leader in the design, development and manufacture of linear and mixed-signal integrated circuits. The company is headquartered in Sunnyvale, California and has 8,000 employees across its facilities in the Western United States, the Philippines and Thailand.
Challenge
Diverse geographic locations made it extremely challenging for Maxim to control shipping and distribution controls or to maintain any consistency in vendor quality and pricing. Maxim presented Agistix with four main goals: (1) Centralize decision-making for how goods would be shipped and with whom; (2) Enforce strict parameters on shipping methods and vendor selection; (3) Reduce overall costs of shipping and distribution; and (4) Simplify management of huge volumes of weekly invoices from multiple vendors.
Solution
Agistix implemented its robust platform at Maxim's headquarters in Sunnyvale, California, centralizing decision-making control at a single point while giving users worldwide access to Agistix Heavy Freight and Small Package shipping services via standard desktop browsers. Maxim also took advantage of the Agistix Invoice Consolidation service.
Results
From the very first day they began using the Agistix shipping solution, Maxim was able to enforce shipping methods and vendor selection. Within the first quarter of use, thanks to increased pricing visibility for small parcel shipments and dynamic bidding that leveraged the spot quote market for heavy freight, Maxim reduced shipping costs by more than 28 percent. Instead of processing up to 500 shipping invoices each week, Maxim now receives a single electronic invoice. This change alone has cut accounts payable processing time from 70 hours per week to five minutes, generating savings of up to $5000 a week.