Tti Case Study
TTI – Case study November 2011
TTI is located in Fort Worth, Texas and operates as a specialty distributor of passive, interconnect, and discrete components. “TTI’s mission is to be the most preferred electronics distributor for their customers and suppliers, deliver the right parts exactly on time, and to exceed their internal and external customer requirements through continuous improvement, while providing a home for hardworking, dedicated, knowledgeable, and ethical people who believe in this Company and this philosophy.” (TTI, Website, 2011) Within this case study we are reviewing the potential effects that TTI would be faced with if they decided to place a Distribution Center (DC) in Asia. From the case study we learn that TTI saw two separate marketing trends on the horizon. The two trends Craig Conrad, Vice President of Sales for TTI, toiled with were that of globalization and customer demand for local inventory to just-in-time objectives. Paul Andrews, founder and president of TTI, and Conrad both were aware that some customers believed TTI needed a foreign presence. Globalization within TTI’s customer base was rapidly growing as was the expectation from the customers for TTI to become global distributor. Andrew’s main concern with placing a DC in Asia was that TTI would stretch their resources to thin leading to damaged customer service. In the 1990’s TTI had opened sales branches in Europe, Canada, and Latin America. A DC was opened in Munich, but did not share the same success as the Fort Worth DC. This caused management to rethink the potential of opening other international DC’s. During this time the auto replenishment process was on the rise, but TTI management feared that this process could not service customers overseas. The case study specifically sites these three concerns management had: 1. How much would the new facility and personnel cost? 2. Would TTI’s culture of excellence be maintainable in the
TTI is located in Fort Worth, Texas and operates as a specialty distributor of passive, interconnect, and discrete components. “TTI’s mission is to be the most preferred electronics distributor for their customers and suppliers, deliver the right parts exactly on time, and to exceed their internal and external customer requirements through continuous improvement, while providing a home for hardworking, dedicated, knowledgeable, and ethical people who believe in this Company and this philosophy.” (TTI, Website, 2011) Within this case study we are reviewing the potential effects that TTI would be faced with if they decided to place a Distribution Center (DC) in Asia. From the case study we learn that TTI saw two separate marketing trends on the horizon. The two trends Craig Conrad, Vice President of Sales for TTI, toiled with were that of globalization and customer demand for local inventory to just-in-time objectives. Paul Andrews, founder and president of TTI, and Conrad both were aware that some customers believed TTI needed a foreign presence. Globalization within TTI’s customer base was rapidly growing as was the expectation from the customers for TTI to become global distributor. Andrew’s main concern with placing a DC in Asia was that TTI would stretch their resources to thin leading to damaged customer service. In the 1990’s TTI had opened sales branches in Europe, Canada, and Latin America. A DC was opened in Munich, but did not share the same success as the Fort Worth DC. This caused management to rethink the potential of opening other international DC’s. During this time the auto replenishment process was on the rise, but TTI management feared that this process could not service customers overseas. The case study specifically sites these three concerns management had: 1. How much would the new facility and personnel cost? 2. Would TTI’s culture of excellence be maintainable in the
Bibliography: Donald J. Derewecki, C. (2033, Unknown Unknown). "GRAND OPENINGS: PLANNING A NEW DISTRIBUTION CENTER". Retrieved November 14, 2011, from Gross and Associates: http://www.grossassociates.com/articles/design.htm Heil, K. (2011, unknown unknown). Location Strategy. Retrieved November 13, 2011, from Reference for BusinessEncyclopedia of Business, 2nd ed.: http://www.referenceforbusiness.com/management/Int-Loc/Location-Strategy.html TTI, Website. (2011, November 13). TTI Inc. Retrieved November 13, 2011, from TTI Inc.: http://ttiinc.com/page/About_CorpProfile