Case Studies Data Storage Manufacturer | Case Study: Packaging
Integration Adds Value When it comes to finding creative solutions to tough logistics issues, Saddle Creek Logistics Services has considerable experience. The 3PL prides itself on helping customers to increase efficiencies, streamline supply chains and manage operational costs. Case in point: Saddle Creek’s relationship with a leading data storage manufacturer.
The Business Challenge
Saddle Creek has handled logistics operations for the manufacturer since 2002 and is the company’s exclusive 3PL in the U.S. From its Charlotte, N.C. campus, Saddle Creek manages receiving, warehousing and distribution for the manufacturer’s extensive product line as well as order processing, seasonal pallet display assembly, and order fulfillment. Recently, the manufacturer approached Saddle Creek with an inventory control challenge. They were importing formatted, fully packaged hard drives via ocean freight from China. Unfortunately, transportation costs were high, and the hard drives often became obsolete before they could be sold through because of the lengthy shipping cycle.
To streamline the manufacturer’s supply chain and control costs, Saddle Creek offered to format, test, and package external hard drives. The 3PL designed a specialized process and put systems in place to support it. Saddle Creek’s Charlotte, N.C. campus offered the flexibility in both space and manpower to make the program work — without a lot of added fixed cost for the customer.
The manufacturer now imports bulk quantities of unformatted hard drives and plastic cases, and Saddle Creek formats them with the newest standard based on on-hand orders. The manufacturer is no longer faced with an inventory of obsolete formatted hard drives, and transportation costs are reduced because the bulk inbound shipments take up less room on the container.