BAE Systems delivers a full range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and support services. Saddle Creek Logistics Services was selected to provide complete warehousing and fulfillment solutions for BAE’s F-16 avionics test station program.

The Business Challenge

In 2001, BAE Systems faced escalating labor costs coupled with rising facility expenses for its internal warehousing and supply operation. The company wanted to find an outsourcing partner who could assume responsibility for stocking 18,000 items, provide inbound quality control (QC) inspection, and deliver fulfillment support for its F-16 avionics test-station production operation. While cost reduction was essential, maintaining a high degree of quality and control was critical for this ISO-certified defense contractor.

The Solution

Saddle Creek was engaged to handle all aspects of quality control (QC), stocking and fulfillment. Saddle Creek constructed a contained and dedicated area within its warehouse to meet the strict temperature, humidity and ESD controls required by BAE and its government customers. This dedicated area was equipped with six automated material handling carousels that deliver efficient and accurate picking in a “pick-to-light” environment. Saddle Creek was granted access into BAE’s systems for directly linking carousel picking, inventory management and inbound QC inspection. A daily shuttle service was established by BAE for transporting production kits from the Saddle Creek distribution center directly to the production line.

The Results

With Saddle Creek’s systems and automation, BAE’s warehousing and fulfillment costs were dramatically reduced. Saddle Creek has consistently delivered on its quality commitment and has received BAE’s small business subcontractor of the year award. Now surpassing ten years of continuous service, Saddle Creek remains a key supply partner for BAE Systems.

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