Case Studies, Full Text
West Region Distribution
Wholesale Supplier Taps California Distribution For West RegionDistribution to Improve Service to Area Customers
California Distribution was approached by a manufacturer that sells liquid candlelamps, lamp fuel and wax candles to hotel and restaurant supply and wholesale food companies. An east-coast firm, this client was at a competitive disadvantage because it lacked a west coast distribution point. The company sought a reliable, LA-area warehouse partner and chose California Distribution (CDI) to service its west region customers.
The firm ships product in bulk to CDI from its east coast manufacturing plant. CDI stores the product and fulfills all west region orders. In addition to regular orders, CDI is able to respond to urgent needs of west region customers who run out of inventory or require immediate shipment to accommodate a customer order.
The partnership with California Distribution has enabled this manufacturer to:
- Reduce order cycle time to west coast customers by 3-5 days compared to east coast fulfillment
- Reduce transportation cost since our client can now send more economical bulk shipments to CDI for local fulfillment
- Improve service to its west region customers and compete more aggressively
Vendor Compliance
Vendor Compliance Program Helps Tableware Vendor Reduce Retailer Chargebacks
CDI offers a vendor compliance solution to a retail vendor that makes and markets dinnerware products, such as plates, glasses, and flatware. Prior to partnering with California Distribution, this company managed its own warehouse in the LA area, with most product stored in bulk. The WMS the vendor was utilizing was old and did not provide the tools needed to successfully ship to retailers. As a result, the company was receiving a relatively high rate of chargebacks from retailers, with fines well into the six-figure range. The company sought a west region warehouse partner and chose California Distribution to help increase the efficiency of its west coast fulfillment operation.
California Distribution created a comprehensive vendor compliance program for the client, which included:
- Identifying consignees and relevant specifications for labeling, EDI, shipping and other vendor compliance requirements
- Documenting these requirements in CDI’s vendor compliance database and WMS.
- Programming CDI’s warehouse management system to print applicable labeling and shipping instructions onto pick tickets
- Tight inventory control with use of CDI’s warehouse management system
To further streamline processes, CDI assumed management of all routing functions and VICS bill of lading creation. CDI and the client communicate all order information via EDI. CDI also provides price ticketing, a service that had formerly been done by an outside vendor for large-volume projects.
As a result of the partnership with California Distribution, our client was able to:
- Drastically reduce chargebacks
- Improve inventory accuracy. CDI’s most recent inventory of 2 million plus units yielded a variance of .00043%
- Reduce storage footprint and improve inventory control and accuracy by moving much of product from bulk to rack.
- Decrease administrative labor to manage orders
IMPORT LOGISTICS
Distribution Solution for West Coast Imports Helps Luggage Marketer Cut
Transportation Costs, Improve Service to West Region Customers
A leading manufacturer and marketer of luggage products was seeking a solution
for its import logistics issues. All of their product is sourced from overseas
and arrives through Southern California ports. Up to the year 2000, all
distribution was handled from the company’s DC in the southeast. For
this company’s growing base of west region customers, order cycle time
from the southeast was too long and the company wanted to reduce inbound transportation
costs from the west coast to its east coast DC. After a competitive search
for a west region warehouse logistics provider, California Distribution was chosen
as the company’s first outsourced logistics partner.
Initially, California Distribution handled only distribution to small west region retailers. The program gradually expanded to include the company’s important mass retail customers. Elements of the solution include:
- Denesting product. For container shipments, the luggage manufacturer places smaller bags into larger bags to maximize cube within the container. Upon receipt, CDI separates bags and places individual luggage items into appropriate cartons. About 95% of received product must be denested.
- Placing product and brand-specific label on carton.
- Quality Control – CDI thoroughly inspects a specified number of units from each receipt following guidelines set out by the client to assure the quality meets with their standards.
- Interfacing company systems. CDI accesses the client’s systems via the internet and prints out UCC 128 labels and packing lists.
- Monitoring vendor compliance requirements. CDI provides VICS bills of lading and other vendor compliance documentation, and audits all outbound shipment for compliance with the consignee’s routing guide requirements.
- Fulfilling e-commerce orders direct to consumer.
As a result of the partnership with California Distribution, our client avoids the cost of transporting its imported product across the country. About 50 percent of product is now stored at CDI’s warehouse within 25 miles of the Port of Long Beach. The company’s west region customers are happier since they receive goods much faster. A relationship that began with 300 orders a month to small retail stores has grown to 2000 orders a month to small retailers, mass retailers, and consumers.
Import Logistics
Outsourced Fulfillment Solution Helps Arts & Crafts Vendor
Expand Rapidly Into the Retail Channel
Established for over 40 years, this company is a family owned and operated
business providing consumers with a variety of craft, fine art, and ceramic
products. Their products include ceramic and sculpting tools, wood-carving
supplies, brush cleaners, pastels, painting accessories, palettes, and their
widely popular paint brushes.
In 2002, the company realized it had to be able to participate in retail
programs or risk market share erosion. For the first time, this long
established vendor decided to contract with a third-party logistics provider
and chose California Distribution after a competitive search.
As all of the company’s products are imported, the company’s first requirement of California Distribution was for the cross-dock of seven ocean containers being distributed into Wal-Mart. CDI leveraged its expertise in vendor compliance to deliver a fast, effective solution. The relationship has grown since and California Distribution now handles over 200 SKUs of the company’s product. California Distribution has continued to support the company’s growth as its business has expanded into Jo-Anne’s, Michael’s, AC Moore and a variety of other retailers. They are also a preferred vendor, and the number one supplier, for its product line to Wal-Mart.
The relationship with CDI has helped our client flexibly manage their growth while focusing their resources on the company’s core competency of sales and marketing.
Product Customization
Display Building Solution Helps Direct Marketer Expand Into New Distribution Channel
A well respected direct marketer provides learning aids to children. Its traditional market was direct to consumer, but the company had an opportunity to increase revenue by selling through the mass merchant channel, specifically through a major warehouse club. In order to do this, three specific kits needed to be created from 51 different components, such as workbooks and DVDs. Assemblies Unlimited, which was contracted to produce these specialized products for the direct marketer, chose California Distribution (CDI) to create and ship the new product line.
Goods arrive from a variety of domestic and overseas locations. Packaging materials arrive from China through the Port of Long Beach, just 25 miles from CDI’s main distribution center. The full-service warehousing and distribution solution involves:
- Receipt of product and entry into CDI’s warehouse management system, which assures inventory accuracy and visibility to available product.
- Insertion of designated product into the selling package to create the final kit (SKU)
- Packaging multiple kits into large master carton
- Preparing items for shipment, which includes a process to ensure compliance with the retailer’s routing specifications
- Management of TL shipments to the retailer’s distribution center
The project involved production waves. A single wave involves building 60,000 units in a three-week period. California Distribution has successfully executed the project, on budget, with a very high degree of accuracy provided by our quality processes. Outsourcing to Assemblies Unlimited and CDI has enabled the client to:
- Increase revenue by opening up a new distribution channel
- Increase customer satisfaction by providing product in the exact form specified by our client’s new customers.
Product Customization
Turnkey Solution for Storage, Assembly and Shipment Enables
Start-up Company To Focus Resources on Business Expansion
California Distribution’s challenge was to assist a start-up company that makes products for dogs and their owners. Two entrepreneurs developed the idea for the product and source all the components. But they needed a partner to help build the end product from multiple components, as well as store and ship the product to Petco and other pet product retailers.
California Distribution receives raw materials from different sources, both domestic and international, and builds kits that are shipped out store-ready. Components of the solution include:
- Drayage from the port
- Quality inspection of inbound product
- Assembly of kits and boxing of final product for shipment. Product leaves the warehouse shelf-ready.
- Management of outbound transportation
Southern California Freight
Dedicated CDI Truck with Multiple Stops Helps Major Electronics Vendor Save 25% Over LTL Solution from West Coast
A major electronics manufacturer ships flat screen TVs and other electronic products from the west coast to east region customers. The company had been moving much of this freight LTL and sought a faster, lower-cost solution for its “large mark” loads -- shipments of five or more pallets -- to their smaller, east region customers.
California Distribution (CDI) gives this client a dedicated TL rate for large mark loads. Using its stable of permanent owner-operators, CDI can load orders for three customers on one dedicated trailer and make multiple drops as part of the same run. So, the client pays the TL rate, plus the drop charge.
Among the benefits of the new solution for this manufacturer:
- Transportation costs cut by at least 25% compared to the LTL solution
- The client receives expedited service based on the use of a dedicated driver and truck. For a trip from Southern California to New Jersey, the new solution cuts two days travel time.
- Increase in reliability
- Reduction in over, short and damage because of the elimination of handling at LTL terminals.
Southern California Freight
Reliable Delivery Earns California Distribution Carrier of the Year Award from Prominent Regional Soft Drink Bottler
The Los Angeles bottling company of a major soft drink line struggled to meet transportation requirements during peak ship periods. In addition, the company wanted reliable transportation partners that could offer round-the-clock service. After doing a successful pilot project with California Distribution (CDI), the bottler began using CDI more regularly.
CDI has been able to offer this Los Angeles Bottling company:
- A more automated way to communicate loads
- 24/7 dispatch
- Support for peak volume. CDI has managed 12-14 truckloads per day, mostly during weekends.
- Support for urgent shipments, with two-hour response time on urgent loads
As a result of its consistent on-time delivery performance, CDI was one of only three carriers out of 97 to win this client’s 2005 Carrier of the Year Award.