Varian Associates Forms Alliance with FedEx Logistics Services to Enhance Semiconductor Equipment Delivery

Strategic Insights -

Varian Associates Inc., a leader in semiconductor equipment manufacturing, has formed a strategic alliance with FedEx Logistics Services (FLS) to create an efficient and streamlined delivery system for its customers. This new partnership aims to minimize downtime for companies that use Varian's chip fabrication equipment by providing parts quickly and efficiently. The system, similar to a successful European model, will operate a master parts depot near FedEx's headquarters in Memphis, Tennessee, and remote sites near key customer facilities in the United States.

Key Takeaways:

  • The alliance will provide a state-of-the-art system for delivering parts to Varian's semiconductor equipment customers, minimizing downtime and reducing the need for customers to manage inventory.
  • The Integrated Customer Support System (ICS) will route orders to the nearest depot or remote site, ensuring timely delivery of parts.
  • Varian's semiconductor equipment business contributed $477 million to the company's $1.55 billion sales in fiscal 1994.
  • FedEx Logistics Services, a division of Federal Express Corporation, operates facilities worldwide, providing time-definite services for over 2.2 million items daily to 191 countries.
  • Federal Express Corporation has more than 108,000 employees, operates 471 aircraft, and over 32,000 radio-equipped vehicles.
  • The FedEx Logistics Services' division reported annual sales of $8.5 billion for its fiscal year 1994, which ended on May 31.

Statistics:

  • Varian Associates' semiconductor equipment business contributed $477 million to the company's $1.55 billion sales in fiscal 1994.
  • FedEx Logistics Services operates facilities worldwide, providing time-definite services for over 2.2 million items daily to 191 countries.
  • Federal Express Corporation has more than 108,000 employees, operates 471 aircraft, and over 32,000 radio-equipped vehicles.
  • Program sales of Varian, which include semiconductor equipment and other businesses, tallied $1.55 billion in fiscal 1994.

Sources:

  • Varian Associates Inc. press release, January 30, 1995
  • FedEx Logistics Services, contact Sandra Munoz, 901/395-3891
  • Federal Express Corporation, contact 901/395-3891