Customer Need/Problem:

A U.S.-based importer of a new consumer product (disposable portable charcoal grills), approached OOCL Logistics seeking a partner for a combined ISCMS/domestic distribution operation to allow them to concentrate their business activities on marketing their new product to consumers and retailers and not have to expend valuable administrative and personnel efforts on tracking inbound shipments and fulfilment/distribution. The customer sought support from OOCL Logistics on a number of levels including:

• Inbound visibility of shipments from sources overseas
• Consumer level domestic fulfilment of Internet-placed orders in the U.S.
• Wholesale distribution to major retailers
• Visibility of domestic inventory
• Possible QC and reverse logistics support as needed

Service Solution:

Initially the client requested operations to start with OOCL Logistics in Texas near a current wholesale distributor.  OOCL Logistics immediately completed a detailed cost analysis of distribution patterns for the client seeking savings opportunities in the distribution pattern.  The client, after reviewing the findings, agreed with OOCL Logistics analysis and a decision was made to relocate their distribution operations to OOCL Logistics’ Los Angeles, California facilities to handle their western U.S. regional B2C (business to consumer) shipments and to OOCL Logistics’ Chicago, Illinois facility to handle the Midwest and East Coast B2C and Midwest retailers.  The possibility of a Southeast operation was considered later to support local retailers in that region.

OOCL Logistics applied the full range of ISCMS (International Supply Chain Management) and DMLOG (Domestic Logistics) expertise and services to handle this client’s end-to-end logistics and distribution needs, including:

• OOCL Logistics ocean freight services
• Management of a vendor chargeback program for late bookings and late delivery to cut-off
• OOCL Logistics’ PODIUM® suite of IT solutions OOCL Logistics across the product supply chain providing
• Purchase order visibility
• High-level vendor management for product sourced in Asia
• Shipping and domestic inventory visibility support for product after arrival in the U.S. and during the distribution process
• Domestic distribution operations include
• Storage of product from overseas
• Receipt of orders placed by consumers via the Internet
• Wholesale distribution to mass retailers
• B2C (Business to consumer) fulfilment via small parcel across all 50 states and some territories such as Puerto Rico
• Potential for B2C promotion fulfilment for seasonal programs (such as Christmas)
• Reverse logistics (repackaging and reshipping) of product returned from consumers

Customer Benefits:

With OOCL Logistics handling domestic distribution of a relatively low cost product, the client is able to reduce dramatically reduce the burdensome level of administrative work necessary for the domestic distribution operation and effect significant savings in direct costs improving their profit margins on each piece sold.

The client can also focus their most valuable time and energy to marketing the product while relying on OOCL Logistics to guide the international and domestic logistics processes.