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Home › Ritchey Design - Outsourced Distribution and Fulfillment

Ritchey Design - Outsourced Distribution and Fulfillment

Customer Ritchey Design, Inc. is recognized around the world as one of the cycling industry's premier innovators of high-quality bicycle components
Challenge Ritchey faced challenges running its in-house distribution operation with fluctuating volumes, space and labor requirements. Other challenges included:
  • Rising warehousing cost
  • Inefficient inventory management
  • Inefficient multi-channel distribution: retail bike shops, distributors, on-line national accounts, and grassroots teams.
  • Technology compliance with distributors like QBP
  • Logistics standards compliance with distributors

Ritchey Design placed a high priority on best-in-class service and industry knowledge — their choice of ITS Logistics for solutions was obvious.
Approach ITS Logistics solution included flexible on-demand space and labor, radio frequency (RF) operation, and systems integration. Systems integration provides seamless information flow and provided live visibility to all inbound and outbound transactions for orders to all account types. The solution accommodated different product flows for various customer payment methods and same day shipping with customer options on carrier and delivery transit days.
Solution
  • Custom RF pick and pack solution for labor savings of 21.69%
  • Customer RF order audit to increase order accuracy to 99.59%
  • Designed and implemented packaging to eliminate damages intransit. Following the move to ITS Ritchey Design quickly moved up to the top "A" tier of accounts on the QBP suppliers scorecard
  • QBP scorecard items: sales volume, GM% earned, inventory turns, order fill rate and inbound errors.

"The biggest savings from ITS Logistics came in the form of accurate inventory, cyclical counts replacing the need for annual year count, satisfied customers returing to buy more, and increased freedom for the company staff to focus on sales and brand building."
- Phil Ellinwood,CFO – Ritchey Design, Inc.

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