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For this global industrial manufacturer of vehicles and engines, production depends on exceptional and reliable service throughout the supply chain. When the manufacturer was looking for a partner to manage its distribution centers, it sought a company familiar with the challenges of automobile supply chain management and decided on Penske Logistics. Penske has managed inventory in two of the manufacturer’s facilities in Mexico since 2002.

This case study illustrates the value generated by collaborative supply chain operations. It demonstrates the value that can be had when two different companies in the same industry combine their supply chain operations. If these companies are selling to many of the same customers, and if both of them compete against much larger companies then they can mutually benefit from creating a single supply chain to support both of their businesses – even if they still compete against each other to some degree.