B2B Specialty manufacturer
A large specialty manufacturer of branded consumer products that sells through a broad range of retailers and Direct-to-Consumer (D2C) channels is experiencing dramatic growth. The client had a desire to manage the growing costs and add expertise to their fulfillment and logistics decision-making.
The fast increase in sales dramatically impacted requirements for warehousing space, support personnel and management oversight. These challenges included:
- Having to invest significant amounts of capital in expanding warehouse space, support equipment and IT support systems.
- Investing in additional training and people.
- Dealing with the complexity of multi-channel order fulfillment and the shifting requirements of their diverse customer channels.
- PMA was selected to manage the shipping product to their large retail customers, such as Wal-Mart and Target.
- PMA monitors the customer’s EDI portals for changes and manages the scheduling of inbound and outbound freight shipments.
- PMA coordinates fulfillment with Amazon to support Direct-to-Consumer sales.
- The client was freed from the day-to-day overhead of managing the warehouse operations and is able to focus more on product development and marketing.
- They have also seen a significant reduction in their fixed cost while gaining more scalability to react to market changes. Specifically, they were able to reduce.
- The customer gained the added benefit of having a variable cost model for their logistics operation; this reduced their costs dramatically since they have a seasonal business with high order variation.
- The consolidation of the inventory in one location allows the customer to optimize the amount of inventory on hand while improving their end-user and distribution channel delivery times.