The Challenge
The packaging manufacturer produces ~50 SKUs and was looking for distribution capacity to support new sales channels. Getting this new business was pivotal for the organization. The manufacturer, primarily operating in Canada, faced a significant challenge in expanding its model to accommodate the inventory build-up required by the new market. The majority of its existing business was in Canada – so growing into packaging manufacturing in the U.S. was a new challenge.
Operating on a ‘build-to-ship’ model, the company manufactured products and shipped them directly to customers from the production line. The company’s production facility had limited storage capacity, accommodating only a few trailer loads of product.
The new sales channels demanded a significant inventory build-up within a tight three-month timeframe, exceeding the manufacturer’s existing storage capacity. The manufacturer’s existing logistics partners were unable to provide the required storage solutions within the short timeframe.
The packaging manufacturer needed to find a facility in the target market that could support this amount of inventory, in a short amount of time. But it only wanted to commit to a 1-year test period, an agreement that the manufacturer made with its eCommerce customer.
The Solution
The packaging manufacturer partnered with Flexe to quickly find a facility in their target market. This primary test location offered easy access to a secondary node, ensuring sufficient capacity for increased inventory. A single integration with Flexe’s Technology Platform gave them access to Flexe’s Logistics Network of 3,000+ warehouses and provided immediate access to Flexible Warehousing Infrastructure. This eliminates the need for future agreements with disparate operators, each with their own distinct technology and potentially lengthy onboarding processes.
Specifically, within the U.S. market, the manufacturer’s ambition to explore opportunities across 20 locations would traditionally necessitate multiple, complex integrations. Flexe’s simplified solution providing access to all 3,000+ warehouses in the network with a single integration, streamlines this process, conserving precious tech resources. This strategic advantage has fostered a strong relationship with the manufacturer’s tech leadership, freeing them to focus on high-priority initiatives. This streamlined approach not only enhances operational efficiency but also frees up the manufacturer to concentrate on its core business objectives.
Results
Today, Flexe stands as the manufacturer’s preferred partner for any new facility requirements in North America. Flexe’s value proposition is clear: a unified platform for billing, integration, and operational support, effectively replacing the need to manage disparate individual operators. Furthermore, Flexe offers a consultative layer through network insights, analytics, and guidance on pricing strategies.
