• Receive product from multiple sources
• Sort and palletize product for new recipients
• Ship pallets to nearly 300 individual retail sites
Client is a leading manufacturer of custom retail store fixtures whose mission is to provide quality products through innovative design and efficient manufacturing.
The challenge facing this client included the need to receive product from multiple sources, both imported and domestic, and to deliver to almost 300 stores over an eight-week period in addition to having the units installed at the store site upon delivery. While the customer did have the distribution facilities and capabilities, the scope of the project along with the size of the items, they thought outsourcing may provide better execution and allow them to focus on their core competencies.
Store Opening Solutions LLC (SOS) offered the client flexible warehouse space with the ability to receive product from multiple vendors and locations. SOS’ experienced warehouse personnel provided break bulk services, cross-dock services, kitting services, and consolidation of fixtures from both domestic and international shipment locations.
SOS’ experienced transportation management team provided inbound and outbound freight to 10 regional storage warehouses for milk run delivery to multiple store sites. The team arranged for all temporary storage facilities, transportation, forklift, and manpower requirements.
The installation teams picked up the fixtures at the regional storage facilities delivered and installed the fixtures at the site locations. Teams of two installers completed the installation, and disposed of trash and recycling materials before heading to the next store site.
SOS allowed the customer to successfully execute their project with reliable experience at every step, utilizing one vendor with the cooperation of our strategic partners.
Using a third party for consolidation and logistics support, transportation management, and installation with “activity-based” services led to quicker results and greater savings. Our team combined efficiency, planning, and organization to help the customer achieve their goals.
• 2200 recently acquired stores to remodel
• Consolidated large fixture program
• Provided web-based inventory management
• Loaded pallets in sequence for quick installation on site
Customer operates 6,923 retail stores in 41 states and the District of Columbia. Existing stores range in size from approximately 8,000 to 25,000 square feet, although most new stores range in size from approximately 10,000 to 13,000 square feet.
Our customer faced the challenge of integrating 2200 recently acquired stores into their corporate family within 18 months. The customer questioned whether they should increase their fixed cost by adding a temporary warehouse and the personnel to complete the 18-month long project, or if they should outsource the project. As the customer stated, “Opening and closing warehouses cost money, affects people, and drains management focus.”
SOS was able to offer the customer flexible warehouse space and the ability to consolidate large fixture programs along with a web-based inventory management system that would enable SOS and the customer to manage the reset program. To simplify the process, store fixtures were loaded on trucks so they could in turn be unloaded in the sequence necessary for quick installation.
SOS allowed the customer to remodel 40-50 stores per week with no late deliveries. Before using SOS, it may have taken the company two to three weeks to receive a replacement fixture in the store. Now the customer receives new fixtures within days of placing the order online.
Using a third party for technology, consolidation and logistics support has allowed the customer to convert many fixed expenses into variable expenses. This has not only reduced their risk exposure, but also generated bottom-line savings.
As a result, the customer decided to close down their remaining fixture warehouse and allow SOS to manage all of their consolidations, fixture replenishment, and point-of-purchase display programs.
• Receive all fixtures for new store openings
• Maintain fixture inventory to cover 6-12 months of store openings
• Complete any freight claims for customer
• Consolidate shipments into TLs
The specialty retail operations of the customer consists of retail stores selling a wide variety of furniture, wicker, decorative home furnishings, dining and kitchen goods, epicurean products, bath and bedding accessories, candles and other specialty items for the home.
This retail chain had tried all options over the years, from warehousing and transporting fixtures in-house to using temporary local warehouses. Under the latter plan, vendors drop-shipped the equipment directly to the warehouses starting about four to five weeks before occupancy. The system worked will in some locations, but the overall accuracy was poor.
The frantic phone calls from the customer’s field staff on occupancy days regarding missing and damaged fixtures were a problem. Corporate personnel spent a large amount of time expediting, tracing, and reshipping orders.
The customer now issues blanket purchase orders to its fixture vendors that cover six months to a year’s worth of its fixture needs. SOS allocates the needed amount of space in its warehouse, along with dedicated staff. SOS takes full responsibility for the inventory. If something is delivered damaged, SOS completes the freight claims on behalf of the customer. When it comes time to replenish inventory, SOS coordinates with the customer’s vendors to consolidate shipments, resulting in full truckloads.
By utilizing the services offered by SOS, the savings resulted in about $5,000 in hard costs per store opening, in addition to savings of substantial soft costs.
Using SOS has reduced the customer’s store-opening costs, as well as minimized warehouse and transportation overhead and additional costs, including emergency overnight air shipments associated with late deliveries. The fixtures arrive on time with every piece accounted for. Overall, the estimated annual savings to the company were close to $1 million, which goes straight to the bottom line.
Additionally, the time spent making phone calls, expediting, tracing, and reshipping have all been greatly reduced.