EMC Corporation is the world’s leading developer and provider of information infrastructure technology and solutions enabling organisations of all sizes to transform the way they compete and create value from their information. The company employs more than 38,000 people worldwide and has 400 sales offices and partners in more than 60 countries. The company decided to invest over US$1 million setting up a logistics centre in Hong Kong to improve the efficiency of its supply chain in the region.

Hong Kong’s strategic location in the centre of the region

The initial reason for establishing the Asia Pacific & Japan (APJ) Supply Chain Logistics Centre in Hong Kong was to help EMC’s partners in the region be more responsive to their customers via an efficient and timely supply chain.

“Excluding EMC’s AX range of products, all of EMC’s manufacturing takes place outside of the APJ region,” explains Mr Greg Fenech, Director of Business Operations Asia Pacific & Japan, EMC. “The company needed an efficient way to get its mid-range solutions, for which delivery is time critical, out to its customers in Asia Pacific and Japan in a more timely manner.”

Because of its strategic location in the centre of the APJ region, Hong Kong is the ideal place for the stocking of products that need to be delivered across the region. The city also has an excellent supply chain infrastructure, efficient import structure and a great airport with numerous direct in-bound and out-bound flights to all EMC’s markets in the region – as well as a deep talent pool of supply chain professionals. Hong Kong is also the gateway to southern China, where many of EMC’s partners and suppliers are located.

Delivery times shortened

EMC set up the logistics centre in partnership with DHL Exel Supply Chain. This model, aligning with recognised experts in supply chain management, has enabled a flexible, cost efficient and replicable infrastructure to be implemented in a very short time period. The 15,000–square-foot climate controlled facility holding product in pristine condition services 30 EMC partners across Asia Pacific and Japan.

The logistics centre in Hong Kong has proven to be a success, allowing EMC partners to now receive and on ship EMC mid-range solutions to their customers in less than a week. The shortened lead times have also made it possible for partners to compete in sale opportunities that require rapid delivery times, which has resulted in additional revenue opportunities for EMC and its partners.

Planned expansion to meet rapid growth

The Asia Pacific and Japan region is currently experiencing double digit growth in revenues year over year and is one of the fastest growing regions for EMC in the world. EMC expects this rapid growth in the region to continue.

“Volumes in the region are growing and therefore we will be expanding the Supply Chain Logistics Centre in Hong Kong to meet this increased demand,” Mr Fenech said. “As the breadth of EMC midrange solutions expands, the range of products held in the facility will also increase.”

The Hong Kong logistics centre will also act as the regional logistics hub supplying future satellite logistics centres in other countries in the region. EMC has already launched a Supply Chain Logistics Centre at Narita in Tokyo to meet the requirements of EMC’s partners in Japan. “We have proven that the supply chain model has worked in Hong Kong and we have replicated this in Tokyo, leveraging the skills and knowledge we developed setting up the Hong Kong facility,” Mr Fenech said.

The company also plans to further shorten the supply chain by merging product in transit at the Hong Kong facility. “EMC manufactures products in various locations across the world. To further speed up the supply chain, the product will be sent to the Hong Kong logistics centre, merged and consolidated on site and then shipped out to customers in the region surrounding Hong Kong.”

Mr Fenech concludes “EMC made the investment in the Asia Pacific and Japan Supply Chain Logistics Centre to drive and support business growth through partners in the mid-range solution sector. The facility has successfully delivered this.”

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