Company Report: Span International Ltd
A lean & flexible approach Span International’s use of custom-designed warehousing software key to providing optimum benefits for its supply chain customers

Founded in 1981, Span International Ltd. is one of the premier providers of logistics, technical services, and manufacturing serv¬ices in North America. Headquartered in Markham, Ont., Span International is a subsidiary of UTi Worldwide, and international logistics firm that purchased Span in 2006. During the last year of its independence, Span International had average net revenues of US $36 million. Its acquisition by UTi makes Span part of a company that pro¬vides a global network of services that include customized warehousing solutions, transportation services, manufacturing support, customs bro¬kerage, contract logistics and many other related services. UTi’s international reach, combined with Span’s North American expertise, makes the com¬pany a leader in its field.

Like other logistics companies, Span Inter¬national provides warehousing and distribution services for supply chain management. Span primarily works with the electronics, telecoms, and automotive industries, and uses its own proprietary information technology (IT) solutions to provide continuous improvements in supply chain efficiency. Span offers customized solutions for business in both the short- and long-term, and its multi-user facilities are scalable and flexible in order to fit the differing needs of Span’s clients. These facilities operate 24/7, and according to the com¬pany website, Span’s more than 1,000 employees “live and breathe with the plants.”

REAL-TIME MANAGEMENT
The company operates over 20 facilities in Canada, Mexico, and the United States, as well as internationally in Hungary and China. Span uses its custom-designed warehousing software to provide real-time inventory management at every location in its world-wide warehousing network, and its software is fully accessible for maximum supply-chain visibility. Span aims to optimize inventory levels by utilizing ideas developed by Dr. Eliyahu Goldratt collectively known as the “theory of constraints”, which posits a consumption model of supply-chain organization that is based on criti¬cal thinking and double-loop learning processes. According to Span International’s website, “based on principles of the Theory of Constraints our sys¬tems provide the optimum inventory levels that are tailor-made to allow maximum schedule flexibility with minimum pipeline inventory.” This theoretical basis is a means for Span International to attain its stated goals of reducing plant downtime, reducing the cost of freight, improving the utilization of fac¬tory space, and lowering overhead costs for itself and its clients.

Span International offers far more than ware¬housing and distribution; its services include pre-delivery inspection, sorting, rework, subassem¬bly, and onsite technical support. Span provides scalable manufacturing solutions for its clients that are in part designed to complement its logistics business. By sourcing both logistics and manu¬facturing to Span, companies are able to reduce overheads and simplify their supply chains.

IN-DEPTH EXPERTISE
Though Span International does not do heavy manufacturing, it works with companies like Hewlett-Packard, Fuji, and Zevatech to provide manufacturing services including prototype builds, circuit assembly, and soldering and flux processes. The thinking behind Span’s adherence to a lean and flexible supply chain is applied to its manufacturing arm as well, as the company aims to give its cli¬ents the ability to meet fluctuating demand without sacrificing productivity or wasting inventory.

Binny Jind, founder, president, and chief executive officer of Span International, spoke positively about his company’s future when his company’s acquisition by UTi was announced in November 2006.

“We believe the combination of Span’s strate¬gic customer relationships, geographic presence and range of services, when coupled with UTi, pro¬vides the basis for market leadership in delivering innovative integrated solutions and maximizing the value we can deliver to our clients,” said Jind. “Our entire team shares UTi’s vision for providing global integrated logistics services to clients around the world, and we look forward to working together toward that vision.”

On that same occasion, UTi chief executive officer William Gates spoke about the acquisition and what it meant for UTi’s business.

“The acquisition of Span adds both in-depth technical expertise and scale to our contract logis¬tics operations and thereby further enhances our ability to provide supply chain services to a variety of industries in the Americas,” said Gates. “With a history that extends beyond 25 years, Span’s highly talented management team has built a fan¬tastic reputation and corporate culture around its specialized solutions. We are excited that Span will strengthen our capabilities to serve the end-to-end supply chain needs of our clients and welcome the team to the UTi family.”

During its almost 30-year lifespan, Span Inter¬national has grown from a small operation into a key part of a global logistics network. With enhanced synergy between the operations of UTi and Span and the continuous improvement of its supply-chain management and manufacturing processes, the future for Span International Ltd. looks bright.

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