Logistics provides carrier management and routing services for its customers. Routing can be made based on Logistics' domestic and international carrier relationships and rates or on the customer's carrier base. If a customer requires a type of service not currently under contract, Logistics will source a carrier and negotiate special rates. Quality of service, transit time, product considerations, and cost are carefully reviewed upon selecting a carrier. Carrier freight payment is completed by Logistics resulting in reduced administration costs for the customer. In addition, historical reporting by mode, carrier, lanes, and total volume will be available upon request.
Logistics operates a transportation management system (TMS) containing the carrier routing database geographically and by service type, including pool distribution points. The software allows Logistics to select a least cost routing that will meet the shipment requirements for transit time and other parameters such as size, weight, loading, and unloading constraints.
The TMS also includes an optimizer, allowing Logistics to combine shipments across multiple customers to attain economies of scale so the customer gets the lowest transportation and the most competitive service in the industry. The optimizer also supports large volumes of shipments from the same customer. For example, if a customer ships hundreds of shipments in a short window of time, Logistics can combine the LTL shipments into multiple-stop truckloads. The individual shipments can be dropped at "pool" points using Logistics' proprietary distribution network so the pool partners can receive large batches of LTL shipments from a truckload and individually distribute them in their local geographic area.
Logistics has formally contracted over 300 local distribution agents nationwide that support pool distribution. These resources are strategically located throughout the United States and are within 50 miles of approximately 94% of the population. The international network is also comprehensive and serves the areas of the world where most commerce occurs. The international network can quickly be expanded to meet customer needs in specifically identified countries and markets.
Each agent is trained to receive, inspect, and assume responsibility for a shipment from any carrier. The distribution center stages the shipment in a secure area where it is ready for delivery as requested. If more than one inbound shipment needs to be consolidated, configured, or assembled while in transit, the agent 'merges' the appropriate items for a single delivery. Customers are called 24 hours in advance to schedule the delivery, and a verbal site survey is conducted to assure the highest level of quality possible.
Site services are also provided, such as stair carry, light rigging, assembly, installation or de-installation, unpacking, and debris removal, etc. If required, notification can be provided to the shipper upon receipt of an inbound shipment as well as confirmation of the final delivery. Other activity and quality reports are also available.
There are several advantages to the Logistics network. The primary advantage is its national presence. While competitors attempt to serve the country from 40 to 70 distribution sites, Logistics is using 300+ sites. This will minimize the local distribution costs because most deliveries will be "local," probably within 50 miles, with no remote surcharges. Transit time will also be minimized because the agent can serve the "local" area within three business days (or less) rather than once per week or every other week. Another advantage is consistency. Since all agents are under contract to a single management company, they are positioned to provide the same service, the same way, anywhere in the US.
Logistics uses its distribution network to provide decentralized warehouse service under the central control of one computer system. These distribution agents provide temporary staging, general ongoing storage, inventory management, order fulfillment, pick/pack/ship, packaging, crating, product configuration, kitting, and a wide variety of other value adding services. Each location is controlled by a centralized purchase order, inventory control, and order management system. The system provides all the tools the warehouse needs to track the material in its facility while rolling up to a national database that gives the customer a single view of the inventory by location. Serialized and non-serialized product is managed with equal intensity.
The system enables us to perform receipts of specific items against a specific purchase order or sales order. The receipt places the goods into inventory where it is visible and remains until ordered out of the warehouse. A customer representative can create an online pick list to trigger a sales order. The pick list is used to pull the required goods from inventory and prepare them for shipment or pickup. The requirements for order fulfillment may vary. If the product is large, it is pulled from pallet racks or bulk storage, staged for visual and systemic order validation, and shipped as appropriate. If the items are smaller, they are pulled from shelves or bins, packed as necessary, and shipped using the appropriate carrier, given its size and delivery parameters. When the sales order is released, the goods are decremented from the inventory and a history of all activity is visible to the customer.
Installation service is available at using two primary methodologies, the distribution agent personnel or a professional tradesperson. If the service is mechanical in nature, requires hand tools, and can be completed in less than one hour, will use the local delivery crew from the distribution agent to provide the service. These resources are already at the destination site and have the expertise to perform routine installation services. These services may include, but are not limited to:
- Installing and testing equipment such as a copier, ATM, or vending machine
- Leveling a store fixture or installing doors, shelves, or locks
- De-installing a personal computer, printer, or server
- Assembling furniture components, i.e. table top to pedestal, upper cabinet to base
If the installation is still mechanical and requires hand tools but will take longer than an hour to complete, will still use the distribution agent personnel for the work, but will dispatch a separate crew. It is not cost effective to use the delivery crew because it is too expensive to monopolize a truck during the installation period.
Professional trade people are contracted for technical installation service. Logistics has established strategic alliances with several installation companies that specialize in a wide variety of services such as carpentry, masonry, furniture or drywall repair, artwork hanging, light construction, and renovation project work. These partners are licensed, bonded, and insured contractors who are qualified to complete complicated tasks or projects. They also provide the site project managers to run a labor crew, read blueprints, develop and comply with a schedule, and manage projects to assure the quality of the job.