Case Study

Outsourced Distribution and Fulfillment

By January 15, 2016 No Comments

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.