Complete Outsourcing for World's Largest Producer of Power Tools
How the customer was able to satisfy their service center needs
The Problem: The customers of the world's largest producer of power tools and accessories used to have to go to the service center to acquire the part they needed or the service center would have to go to them. If the service center did not have the part required in stock, it would have to be ordered from their centralized warehouse. After the vendor sent the part to the service center, the customer had to pick it up. This process grew tedious, not only for customers of the power tool producer.
The Solution: In 1999, the power tool company had to decide if it would be more efficient to outsource all these functions to a third party logistics (3PL) provider or invest internally to keep these functions in-house. As the world's largest producer of power tools and accessories, the manufacturer needed a 3PL that would become an extension of their company, with the two companies partnering and accomplishing goals together. Fidelitone Logistics was that 3PL.
Suburban Chicago-based Fidelitone Logistics designed a program that offered enhanced technology for forecasting management and improved flexibility for customer support. As a result, the power tool and accessory producer entrusted its entire parts distribution program to Fidelitone Logistics. Fidelitone Logistics is now the exclusive parts provider for the manufacturer in the U.S. and worldwide. The integration, planning and execution process was seamless and without interruptions to the manufacturer's business.
Supply chain management is a critical function of the manufacturer's business. Making the decision to outsource to Fidelitone Logistics has provided the company with the opportunity to dedicate their resources to product development, manufacturing and marketing of their popular home and commercial products.
Fidelitone Logistics' facility has more than 180,000 square feet of space dedicated to the company's repair parts distribution program. The 3PL maximized the efficiency of its facility in order to be able to ship out over 13 million parts throughout the year for the manufacturer alone! Fidelitone Logistics positioned Black & Decker's fast moving items in a central location, while slower moving items were placed in an outer area to optimize efficiency for both companies.
As the manufacturer gained market share and increased growth through product marketing its 3PL had to grow to better accommodate every aspect of the company's supply chain functions. It was necessary for Fidelitone Logistics to provide continued flexibility and adaptability to support the changing business needs of the manufacturer. Scalability was equally important. Fidelitone Logistics was able to provide the necessary capacity in both its facility and technology systems to meet the needs of the power tools and accessories producer.
With products marketed in more than 100 countries and approximately half of its revenues from outside the United States, the manufacturer's product lines hold leading market share positions in their industries. Fidelitone Logistics procures inventory from the company's plants and outside vendors worldwide, and makes daily shipments to all company-owned service centers, national accounts, retailers, foreign accounts and end users throughout North and South America as well as several countries across the globe every day.
As the practice of manufacturing outside of the U.S. has seen a rapid incline since the leading manufacturer of power tools partnered with Fidelitone Logistics in the late 1990s, the ability to purchase and import parts globally has been essential in the success and expansion of the company. Fidelitone Logistics provided the expertise and flexibility for global procurement and shipping that will benefit the manufacturer as they continue to expand worldwide.
Conclusion: Now the service part that was once shipped from the centralized warehouse to the service center and then picked up by the end customer is shipped directly to the customer, increasing the speed of delivery while reducing costs for the manufacturer. The difference between the process the power tool manufacturer had in place initially and its current plan is a top 100 third-party logistics provider, Fidelitone Logistics.