How a gifting company used logistics solutions to ensure delivery on time
About the client
The client is a leading giftware retailer within Australia. They sell products through a network of 230 retail stores across several states, with goods dispatched from a 3PL logistics warehouse located in Adelaide.
To achieve greater sales through their store network during peak periods, the client recognised that stock should arrive at all stores on a “just in time” basis. However, the singular, centrally located, 3pl warehouse in Adelaide made it difficult to cater to all the stores across Australia with this strategy. Despite the central location of the warehouse, organising shipments to distant areas such as North QLD, Regional NSW, Perth & Regional WA required extended lead times. This made it difficult to fulfill the client’s optimum freight management strategy of ‘just in time’ deliveries. The large number of stores also put pressure on the capabilities of the single 3pl logistics warehouse.
In previous years, the planning team tried a different freight management strategy to fulfill orders during peak periods. They utilised a ‘shotgun process’ with mass despatches to all stores during busy times. Unfortunately, this strategy had very poor results due to the extended lead times required for the long-haul deliveries. There were many instances of stores receiving mass stock after the key dates had passed (Christmas, Father’s Day etc.) and not enough stock during the peak period.
A Logistics management collaboration
Elite Logistics Australia collaborated with the client to develop revised logistics solutions for their Australian network. The choice of a singular warehouse was reviewed and scrapped in favour of designating several smaller warehouses to optimally service the retail network. The collaborative process involved reviewing locations to figure out where would reduce costs, speed up delivery schedules and reduce lead times. A freight management plan was devised for peak periods to organise the most efficient way to cater to all 230+ stores.
Freight Management Solutions
After extensive logistics solution consultation, Elite Logistics Australia came up with a plan for 3 new warehouse locations in Perth, Brisbane, and Melbourne. The new warehouse locations would be supported by Elite Logistics Australia’s retail logistics fleet to ensure minimal lead times to all client retail stores in these metro areas. ELA worked with their carrier network to provide an individualised approach to cater for lead times to each company store. Of the 230+ stores, 30% are located within metro regions, meanwhile 50% are in regional and 20% remote areas.
On ELA’s recommendation, the client closed the Adelaide warehouse and setup three new 3PL warehouse locations: Perth, Brisbane, and Melbourne. This resulted in short lead times to store enabling greater flexibility for the stock planners. This, in conjunction with a tailored logistics management solution for supply chain management, means the 2022 peak periods will be less stressful and more organised. Each retail outlet will be able to receive accurate stock intake on time for increased sales and improved customer satisfaction.