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CLIENT STORIES Philips Goes Electronic Philips Electronics Ltd. in Scarborough, Ontario, the Canadian division of the huge Dutch multinational, (it ranked 53rd on Fortune Magazine's 1996 list of the world's 500 largest firms) was an early adopter of MSR's Automated Customs Clearance System (ACCS). "We were one of the first companies to buy the MSR system," recalls Max Persaud, Philips' manager of corporate logistics, "because in the late 1980s we believed that computerization was the future direction of Customs clearance. The software opened up a window of phenomenal savings by facilitating and expediting the handling of Customs formalities." During the 10 years that Philips has been using ACCS, Persaud estimates it has saved at least $1 million in brokers fees in addition to other internal costs. The simplicity of the system enabled Philips to close out its airport office operated by an outside Customs broker and conduct all its Customs clearance in house. Currently two full-time employees are involved, down from seven in 1986. Overall, the logistics department has been reduced by almost 50% – from fifteen to eight. Even so, ACCS still yields annual savings of almost two-thirds of Philips' total Customs clearance budget, "More importantly", explains Persaud, "these savings have given Philips a significant strategic advantage with no compromise in service levels. We've seen a ripple effect on our product pricing and corporate margins." Currently Persaud's staff handle about 12,000 import entries a year from almost every part of the world including the Pacific Rim, Latin America, Europe and North America. Products include radiology therapy equipment, personal hearing aids, and domestic appliances – just to name a few. All Philips locations across Canada now have access to the system. From this information, reports regarding vendor sources, customer purchases, destinations, and so on, can all be easily generated. Even customer service has improved. "Before it took days for customers to get their goods," says Persaud. "But now Customs documents are approved upon receipt and we ship to customers that same day. This system will be even more productive after we hook-up ACROSS and release our goods electronically as well. Company: Philips Electronics |
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