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B2B Specialty manufacturer

Success Story:

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.

Challenge:


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.

Solution:


  • 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.

Bottom Line:


  • 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.

 

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