The Challenge
Sourcing product from Korea, the customer initially used Noatum Logistics to assist with international freight forwarding and the custom clearance process for shipments to the U.S. As the customer grew their customer base and product offering, it was apparent their outsourced warehouse solution in the U.S. could not keep up with their needs. The end customers’ orders frequently required special packing, rush deliveries, and special project handling, straining the customer’s inventory management practices. Each of its retail customers had specific shipping and routing procedures, and Internet sales required separate processes. In addition to service limitations, the customer felt its warehouse provider was not pricing its services competitively. Familiar with the portfolio and professionalism of Noatum Logistics, the customer asked us to analyze the situation
The Strategy
Noatum Logistics realized we could provide the customer a one-stop shop for all of their supply chain needs, from origin to destination.
We recognized that we needed to quickly fix their warehouse management process by greatly improving inventory flow as well as visibility for better planning and much greater flexibility.
The Solution
Noatum Logistics added warehouse management services to the international freight forwarding and customs clearance services we already were providing. This gave the customer an end-to-end solution for their supply chain, which would allow for more control and visibility to their product.
As part of the warehouse management service, Noatum Logistics set up processes to handle and ship orders to the end customers, including rush orders with specialty needs. The Noatum Logistics services enable the customer to meet customers’ specific delivery requirements such as delivery appointments and carrier selection. Noatum Logistics also supports the customer’s e-commerce efforts, with Intranet orders sent directly to us for picking, packing and shipping.
As part of the Noatum Logistics service, the customer is able to get real-time data through a Web portal. This is used as a daily tool to assist the customer in tracking inventory, reporting shipped orders, and maintaining pre-determined inventory levels.
Noatum Logistics also helped the customer to quickly establish EDI connections with their large retail customers. EDI allows the customer to reduce operational costs, improve reporting accuracy and speed, and reduce cycle time from order placement to product delivery.
The customer and Noatum Logistics value continuous improvement in their collaborative relationship. Noatum Logistics remains receptive to our customer’s suggestions, making the relationship even more effective.
The Results
Noatum Logistics has become an extension of the customer, operating much like an in-house logistics department. The customer is able to run a full inventory cycle, from booking the shipment overseas with their manufacturer to delivering the product to their customers, using one service provider – Noatum Logistics. This has proven to be a very efficient way to manage and track their inventory at all times. Our services contributed to the customer’s growth over the past four years. Rush deliveries are no problem with over 80 percent of orders shipped the same day and the remaining 20 percent shipped the following day. Accuracy is equally strong at 99.5 percent.