A cardboard tube manufacturer has been converted to the merits of on-demand warehousing after using Zupplychain to help secure a profitable new contract.
Yorkshire-based J Stell and Sons Ltd manufactures the largest range of cardboard tubes in the UK, which are used for anything from packaging to advanced electronics, automotive or medical applications. But, while the company supplies businesses of all sizes, from multinational corporations to small speciality outfits, the products themselves are bulky but low cost.
So when a potential new Scottish-based client contacted Stell looking for regular small pallet deliveries the initial quotes were looking cost-prohibitive due to transportation costs. Determined to find a solution Sam Stell, Director of Stell, began to research more localised solutions.
Having searched on ‘pallet storage Glasgow’ he came across Zupplychain and after entering some basic details, including the number of pallets he wished to store he was quickly presented with a list of warehouses that fitted his requirements – including clear pricing. Based on both location and price, Sam selected a warehouse in Paisley.
Sam said: “I was in a hurry to understand likely costs to be able to present a localised and fully costed solution to the customer in order to be able to complete the deal. Even before I contacted the Paisley warehouse through Zupplychain I could see their pricing and that of other warehouses in Glasgow, so I knew what I was looking at and was able to compile an accurate quote.”
After submitting the enquiry to the warehouse and providing the quote and solution to the potential customer Sam spent further time exploring the Zupplychain website. He said: “I realised that not only could Zupplychain find me warehouse space where I wanted it but that the stock database system could also provide me with the perfect solution for managing the stock remotely.”
Over the following week, Sam used the Zupplychain message system to communicate his requirements to the warehouse, whilst at the same time negotiating the new business by offering the local logistics solution. Once the new business was secured, Sam confirmed the storage agreement and set up a trial with the warehouse using Zupplychain’s stock database system.
He quickly went through the process of setting up products, printing labels, dispatching to the warehouse, receiving booked-in notifications and requesting a collection of specific pallets, which all went very smoothly.
The dynamics of Stell’s processes, in terms of run lengths, MTO production, low value per cube and limited warehouse space, have previously made non-local customers with regular but small requirements less profitable or non-viable. Having secured this latest customer by using a localised logistics solution and robust operating system, Sam is now intending to use the model to help him target similar new business around the country.
He said: “Without this solution we wouldn’t have been able to quote for this customer, let alone win the business. The Zupplychain on-demand warehousing model means finding space and managing the stock is a much simpler process and I can have a solution within minutes so it makes sense that I can now target similar levels of business in other parts of the country without compromising on profit margins.”