Expertise Delivers Efficiencies, Savings

Customer: Industrial Equipment and Supplies

WSI Services: Warehousing / Distribution, Fulfillment, Dedicated Contract Services, Transportation

Challenge: Streamline distribution, reduce costs, focus on core competencies

Solution: Several years ago, a major industrial equipment manufacturer came to WSI looking for solutions to streamline their distribution system. With seven distribution centers managed in-house and utilizing manual fulfillment, decentralized routing, and trucks that regularly traveled below capacity, they recognized opportunities for improvement. After in-depth analysis of the customer's processes, labor costs, and productivity, WSI presented a proposal for improving their cost structure and efficiency by outsourcing distribution.

Transitioning the customer onto WSI's Warehouse Management System streamlined order fulfillment through the use of Radio Frequency (RF) technology. Material handlers use RF scanners to pull up the order, identify and pull item(s), then print out a packing slip, all fully integrated with inventory and billing systems. "Our on-time ship rate is around 98-99%, which is significant," stated WSI Special Projects Manager Rob Kriewaldt. "Orders received by 2 p.m. go out the same day."

Before, the customer's distribution system shuttled trucks between their 14 manufacturing plants, with the plants storing shipments on their docks between pickups. WSI provided the customer a cross-docking facility to consolidate freight, which saved the customer valuable manufacturing space. Cross–docking also enabled WSI to more fully load the trucks, resulting in significant freight savings. "When they did it, trucks routinely left with 30-32,000 pounds. We can load 42,000 pounds, which saves a truck for every four they used before — which can add up to around $8,000 a month," commented Daniel Johnston, WSI Warehouse / Project Manager.

As WSI continues to help the customer improve their distribution system and reduce costs, the relationship is deepening as the customer looks at additional ways to partner with WSI. To learn more, give us a call at 920.831.3700 or email us.

 

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