direct-to-consumer

Challenge

This OHL global consumer electronics customer is recognized as an industry leader, distributing cameras,camcorders, home audio, televisions, computers, major game consoles and software. The company was struggling with fluctuating volumes, space needs, and staffing requirements and decided to turn to OHL.

Approach

This OHL customer placed high priority on best of class service, security, and space and resource flexibility to meet the peaks and valleys of the electronics business. OHL’s ability to handle changing volumes was critical. OHL’s solution includes warehousing, flexible staffing, consolidated truckloads, enhanced security, SAP integration, packaging, online order fulfillment for direct-to-consumer parcel deliveries and value added services such as assembly of product components.

Value

OHL provides internet order fulfillment, parcel packaging shipments, packaging and 24/7 onsite security. OHL integrates with the customer’s SAP system and consolidated truckloads speed up the distribution process. OHL continuously refines processes to deliver continuous improvements for the customer.

Return on Investment

This customer’s direct-to-consumer orders are shipped within 24 hours of order receipt with the industry standard fill rate being 99%. OHL has increased their shipping performance from 70-80% range to +99% range. Consolidated truckloads allow for faster distribution to this customer’s top five clients. OHL, on average, exceeds the small parcel and shipping and receiving contractual KPIs by over 14%. These improvements in speed and flexibility give the on-floor sales staff the confidence to promote the online service at the stores when they are out of a product knowing that orders placed will be shipped within 24 hours.

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.