Case Study

Retail Fulfillment and Final Assembly

By January 15, 2016 No Comments

Requirement

This ITS Logistics customer is a major toy manufacturer distributing via major retail stores. The customer wanted to perform final assembly of the product and display preparation at the final stage in the supply chain postponing final product assembly to improve product forecasting, enhancing supply chain planning, and reducing operating cost.
Challenge
The customer wanted to run minimal inventory levels while maintaining high service level for high demand variability product.

  • Product assembly postponed until order placement
  • Product display preparation for enhanced merchandising
  • Just in time product parts receiving
  • Flexible resource and space to respond to seasonally demand variability
  • Reduced inventory and high service level for highly seasonal product
  • Compliance with major retail logistics requirements: labeling, EDI, packaging

 

Approach

ITS Logistics solution included flexible on demand space and labor for a 24/7 operations. ITS Logistics was assembling the product to order. High demand variability drove a product postponement until the order is placed and required 48 hour order fulfillment. ITS design a 3 shift assemble to order operation, packaged and loaded the product according with all major retail logistics requirements. ITS Logistics managed all retail required carriers for on time pick and delivery

 

 

Solution

  • 99.9% order fill rate
  • Minimal inventory levels
  • 24/7 assembly operation
  • EDI communication with all retail locations (Walmart, Target)

Implemented online tools for increased visibility and improved demand responsiveness