OHL Helps PetSafe Keep Control of Explosive Growth

Challenge:

Radio Systems Corporation (RSC), made life a lot easier for pet owners when it introduced the first do-it-yourself electronic fence to the pet market in 1991, and the first wireless fence in 1998. Headquartered in Tennessee, RSC is a manufacturer of pet products, specializing in safety and training solutions sold under its PetSafe brand. RSC operates offices in California, Canada, England, Japan, Australia and China, as well as manufacturing facilities in China and Mexico.

Overwhelming growth is a problem most companies wish they had, but when it actually happens, it can present a serious challenge. RSC has averaged an exponential growth rate of 45% annually since 1993. With no plans to slow down, RSC needed an external logistics partner with the capacity and flexibility to grow with them.

“We were busting at the seams,” said Steve Baker, vice president of logistics for RSC. “Our success was straining the physical resources of the corporation.”

Since 2004, OHL has provided the ideal logistics partnership for RSC – and PetSafe – expanding the relationship each year.

Solution:

Initially, RSC only wanted OHL to take over basic domestic distribution and warehousing, starting with 50,000 square feet of space. But business quickly expanded and PetSafe needed a 200,000-square-foot facility.

Soon after, OHL also assumed responsibility for international ground and ocean freight transportation management from RSC’s manufacturing facilities in Mexico and China, including Customs Brokerage services. RSC also asked OHL to assume control of all outbound LTL (less than truckload) and FTL (full truckload) shipments to PetSmart®, the nation’s largest specialty retailer of pet products.

This integration of all inbound and outbound shipping, managed by the combined RSC and OHL teams, has improved efficiency and simplified RSC’s supply chain. Inbound containers from Mexico and China, warehousing and packing of more than 2,400 unique items and final-mile LTL and TL transportation to retailers or consumers is controlled by a single provider. And today, OHL works in close daily concert with RSC management to quickly flex and grow as PetSafe does.

Results:

The partnership has paid off, literally. OHL has provided a 3-5% cost savings on RSC’s international transportation, while speeding up door-to-door delivery from China to the U.S. by 2-4 days. On domestic LTL and TL transportation, OHL provides RSC with a 10-15% annual savings on all deliveries, while dramatically improving visibility along the logistics chain.

OHL also provides RSC with a quarterly, face-to-face business review, providing a complete set of KPI (key performance indicator) measures.