How Outsourced Logistics Yielded Substantial Returns
Through our partnership with PGL, we found efficiency we could not have managed ourselves, maintained record margins with minimum retailer penalties, and I could watch it all happen with the convenience of the Connect App.
Jason Mooneyham
Sr Director of Operations, Incipio
Complex problems require custom solutions. After trying multiple shipping and logistics providers, the right partner makes all the difference. PGL Connect Technology coupled with decades of experience lead Incipio merchandise to be on time and became more profitable.
THE PROBLEM
Incipio had engaged with other outsourced Logistics Departments before, each failing to maximize the opportunity, leading to use of the wrong mode of transportation and lost profit due to penalties. Providing a valued product is only part of the equation. Keeping retailers supplied is crucial, and PGL knows how to get this done.
THE SOLUTION
Beginning in 2017, PGL was able to augment Incipio infrastructure as well as find new efficiencies. Investigation into their processes revealed that their internal warehousing in Corona California was more a hindrance than help, and the move to use the PGL facility allowed both added capacity as needed, and faster Cross Dock Labeling, an important factor when dealing with retailers. Additionally, this allowed PGL to provide additional value and savings with an Duty
Draw Back program.
PGL SERVICES UTILIZED:
- West Coast Distribution domestically
- Daily stop for all domestic freight out of California
- Weekly Big Box Retailers DC Shipments
- 1 stop shop solution for the customer
- Imported product from Hong Kong via Air Freight
SHIPMENT MODES:
- Air Freight
- Ocean Freight
- Cross Dock while Labeling
- Raw box labeling for each SKU and PO
THE BENEFIT
Incipio was able to realize tangible benefit by reducing penalties from retailers, delivering on time according to their schedules with complete product inventory (On Time In Full) with a monthly savings of $20,000 per month. Making sure that Incipio was in-store on time for their peak season was the highest priority, leading to an astounding 96.5% improvement in OTIF from 28%.
VISIBILITY:
- Created specific custom labels for each retailers specs
- Created the delivery appointments to the retailers
PEAK SEASON:
- 20k Kilos of air freight with 97% on-time
- 1000+ sku’s
- Shipment Counts:
- 120 Shipments a week
- 42 pallets out every week
- End Customers delivered to:
- 30-40 Clients delivered to on a weekly basis
- Verizon, CVS, Walmart, Best Buy,
- Telsa, Apple, Voice Com
The Difference Makers:
What factors made the biggest impact for Incipio?
- PGL Connect app and Control Tower: Full visibility of everything they needed to know in one place
- Level of service: Dedicated PGL team with single point of contact
- Industry Expertise: Having intimate knowledge of retailer scheduling and requirements
