Background
TomTom is the world’s leading navigation solutions provider with market shares of approximately 50 percent in Europe and 25 percent in the United States. The company was founded in 1991 in Amsterdam and publicly listed in 2005.  TomTom defined the personal navigation category and has experienced phenomenal growth since its inception. Annual revenue has grown from €8 million in 2002 to €1.7 billion in 2007.  In 2007, annual profit increased by 43 percent to €317 million.  The company has an install base of approximately 20 million units worldwide.

Remarkable U.S. Growth
After a stellar U.S. launch, the demand for TomTom’s advanced GPS devices quickly expanded.  To meet forecasted consumer demand, they sought a partner that could provide scalable, flexible logistics solutions to manage this surge.

After an extensive third party logistics (3PL) review process, TomTom selected ATC Logistics & Electronics (ATCLE), for their established capabilities in closed-loop supply chain services and technological expertise.  Once the partnership began, ATCLE expeditiously implemented a new supply chain process to prepare for the critical fourth quarter holiday season.  North American operations were transitioned in phases to ATCLE in the fall of 2006, beginning with same-day fulfillment orders, with volumes rapidly increasing to more than several hundred thousand units during the seasonal holiday rush.

Quick Response Capabilities in North America
In late 2006, a year after its successful North American launch, TomTom released a significantly upgraded map application that needed to be distributed to more than 150,000 customers. ATCLE was ready for this sizable challenge and worked closely with TomTom to implement a Web-based solution to facilitate high-velocity forward fulfillment of more than 100,000 upgrades in only a few weeks.

Proven Results ATCLE’s proven capabilities, flexibility and exceptional operational and technical infrastructure have helped TomTom fulfill business objectives and continue their stellar growth.

Results include:

• Significant reduction of freight expenses
• Tangible profitability improvement attributed to North American supply chain efficiencies
• Improved flexibility to offer promotional concepts that differentiate TomTom from its competitors
• Increased outbound shipments more than ten-fold during peak demand
• Increased repair volumes by a factor of 12 since January. 2007
• Achieved a 99.9 percent quality rating for outbound fulfillment and test & repair since January 2007