Reduce Transportation Costs by 10-15 Percent While Shaving Days Off Door-To-Door Delivery from China
Challenge
PetSafe® is a rapidly expanding manufacturer of pet products, specializing in safety and training solutions. The company introduced the first do-it-yourself electronic fence to the pet market in 1991 and the first wireless fence in 1998. Headquartered in Tennessee, PetSafe has a global network of offices in the U.S., Canada, England, and China, as well as manufacturing facilities in China and Mexico.
PetSafe has averaged an exponential growth rate of 45% each year since 1993. The company was expanding too quickly to keep up with its own requirements for warehousing and distribution. PetSafe needed an external logistics partner with a global presence and extraordinary capacity and flexibility. The company requested proposals from more than a dozen potential logistics partners before choosing OHL.
Approach
In 2004, OHL began providing PetSafe with U.S. warehousing and distribution services. At that time, PetSafe required only OHL’s basic warehousing services including receiving, picking, and shipping. OHL managed fulfillment services to retailers and direct-to-consumer shipments as well.
Value
Originally requiring 50,000 ft2 of warehouse space, PetSafe soon grew to need an 80,000 ft2 facility and then a 200,000 ft2 facility. OHL managed these transitions seamlessly. The relationship quickly expanded as OHL continued to exceed PetSafe’s expectations and assumed control of PetSafe’s global freight using ground and ocean freight transportation management from PetSafe’s manufacturing facilities in Mexico and China. OHL also clears PetSafe’s freight through U.S. Customs.
OHL supplies continuous IT support for PetSafe, including ASN compliance, custom labels/UCC128 development, automated packing lists for domestic and international shipments, and development of a kitting module for multiple SKU conversation to new SKU.
Return on Investment
The partnership has paid off, literally. OHL has provided a 10-15 percent cost savings on PetSafe’s international transportation, while speeding up door-to-door delivery from China to the U.S. by 2-4 days. OHL provides PetSafe with a 10-15 percent annual savings on all U.S. deliveries while improving visibility within the logistics chain.