• Industry Direct Case Study
  • Direct Distribution supply chain management

    IndustryDirect: LEADER IN PACKAGING MATERIALS TURNS TO DIRECT DISTRIBUTION TO MANAGE ITS JIT SUPPLY CHAIN

    Through Direct Distribution’s nationalwide warehouse network, supply of packaging materials is located at point of use and JIT practices are managed effectively.

     

    BACKGROUND / CHALLENGES:

    To ensure constant supply, Packing Material Suppliers must position inventory close to manufactures and contracted bottling companies. Based on the manufactures production related problems, order profiles to supply packing materials can be highly sporadic and lead to “lumpy” demand. Associated with these challenges, a leader in the packaging material supply business was faced with two substantial requirements. First, find a warehousing expert with a national presence capable of distributing goods across Canada. Second, source a warehousing and distribution provider that can provide a high degree of flexibility in resources, space and outbound shipping options.

    MANAGED BY DIRECT DISTRIBUTION

    • A total 40,000 square feet in warehouse space located in Calgary and Edmonton
    • Outbound LTL shipping
    • Inventory control
    • Fully functional WMS – consistent application across Canada
    • Expedited order and distribution management for emergency services
    • A full range of comprehensive KPI’s as part of Direct’s Account Management Program

    PREDETERMINED CONDITIONS FACED BY ALL BUSINESS PARTNERS

    • Inventory must be positioned in every major urban area – in close proximity to 3rd party bottling companies and major manufacturers of packaged goods
    • A high degree of expedited orders
    • A large number of inventoried skus to manage

    SOLUTION:

    With Direct Distribution’s nationwide warehouse network consisting of over 1.2 million square feet, Direct was perfectly positioned to provide warehouse services in every major Canadian city and position this customer’s inventory close to the demand point. Our Accellos WMS platform, operational across all of our warehouse locations, provided the customer a consistent and replicable IT application in every DC location. By working in close partnership with this customer and its manufacturing and 3rd party bottling customers, Direct continues to provide very high and extremely flexible service standards including expedited distribution. In a JIT supply chain, it is Direct’s role to ensure the production line continues to roll without interruption.

    RESULTS:

    • On-time delivery exceeding 99.9%
    • Satisfied customer resulting in multiple year commercial agreements
    • The establishment of comprehensive service standards ensuring all parties define success criteria
    • A formal account management program to resolve logistics issues and drive continuous improvement

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