Fulfillment Solutions Case Studies

Kolbus

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Kolbus has been an industry leader who develops, manufactures and markets bookbinding machinery since the early 1990’s. It is often said that there is hardly a book in this world which does not come into contact with Kolbus machines during its production process. Kolbus has hundreds of different machines used by bookbinding companies world wide operating on a 24x7 basis to produce books. Whenever a machine is not in operation due to mechanical issues, these companies potentially lose millions of dollars for each day they are not in operation. Each one of the Kolbus machines has several thousand parts which must be catalogued, warehoused, picked, packed, and sometimes must be shipped in a manner that they reach the destination within 4-6 hours.

When Kolbus America was in the market for a fulfillment and an online partner, they wanted to work with an industry leader who is capable of handling the following requirements:

Someone with the technical ability to fully integrate with 3rd party accounting systems. Platinum for Windows and Mass 500 have been integrated in such manner that orders can be sent directly from the 3rd party systems to OMS and updated order information is sent back to those systems when updates occur.
The order management and warehouse management system must support over 100,000 SKU’s. Though only a third is actively used, the database must be able to grow and support the ability to quickly retrieve data even though the inventory database is large. End users must be able to query for products in a quick and easy manner.
Maintaining accurate Inventory Levels on multiple systems is always a challenge. Therefore, real-time information of stock levels is of importance. With seamless integration with the 3rd party systems that the client uses, the stock levels are transmitted periodically to ensure there are no exceptions on both systems.
The fulfillment company must be ready to stay on standby 24 hours a day to pick, pack, quality control, and ship around the clock. Sometimes packages must be hand delivered to certain consumer airlines that will then transport the goods to the destination in a short period of time.
The fulfillment company must also be technologically savvy possessing the ability to program certain inventory (computer modules) with customer’s machine specific information using a proprietary computer language.

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Tempur-Pedic^®

Tempur-Pedic International, Inc. engages in the manufacturing, marketing, and distribution of bedding products worldwide. Its products include pillows, mattresses, and adjustable beds while marketing its products through furniture stores, department stores and specialty stores as well as direct response and the internet. Tempur-Pedic has over a hundred different line items ranging from bed frames and foundations all the way up to their multiple sizes and styles of mattresses. Each one of Tempur-Pedic's different line items must be catalogued, warehoused, picked, packed, and sometimes delivered and/or shipped same day.

When Tempur-Pedic was in the market for a fulfillment partner, they wanted to work with an industry leader. A company capable of handling the following requirements:

Warehouse product using a real time inventory management system. Products are received, located, and picked using RF guns in real time.
Pick and ship LTL orders the same day if received by 2 p.m.
Pick and ship TL orders the same day if received by noon.
Consolidate and ship truckload orders for dedicated customers.
In home delivery and set up of beds within a five day window. This includes the removal and disposal of the customer’s old bedding.
Real time closing of orders to generate customer invoice the same day that product ships.
Update websites of third party carriers when orders are ready to be picked up. Generate custom bills of lading from the carrier’s website.
Maintain an inventory accuracy level in excess of 99.5% by verifying on hand quantities weekly in both finished goods and returned goods.
Pick up and process returns. Like items are consolidated for shipment to reclamation center.
Deliver on demand to high priority retailers.
Deliver and stock product into select retailer’s warehouses 7 days a week.

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Merits Health Products^®

Merits Healthcare Inc. is a leader in the healthcare and patient aid industry. Merits was founded in 1985 to design and manufacture innovative healthcare products for all people who experience mobility or respiratory problems.

When Merits Healthcare Inc. was in need of a 3rd party logistics group, they wanted to partner up with a proven company that could handle all of their needs and have the ability to grow with them.

FSI is currently 1 of 3 warehouses for Merits and handles all orders for the central United States and also shipping to both coasts. The Merits product line ranges from small pick and pack items to large motorized power scooters, which ship directly to the customer via LTL services.

Some of the requirements that Merits had when searching for 3rd party logistics company were the following:

Ability to handle all warehousing and distribution services in regards to outbound orders
Transmit all serial numbers from products to Merits during inbound receiving and outbound shipping.
Have the ability to receive 90% of their product from overseas ocean containers, in which the product is floor stacked.
Ability to work with their clients so that they have the ability to offer “will call” orders.

As FSI and Merits have continued to grow together through the years, Merits has begun the process of holding periodic sales meetings and training sessions at the FSI location. This has given Merits the ability to see more of their clients and demonstrate their products to their sales force.

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