Sudden growth caused by an acquisition led Olympia Chimney Supply to seek help in selecting a third-party logistics provider to manage the transition, while consolidating its newly expanded distribution-center network.

Olympia Chimney Supply, Inc.’s 2019 acquisition of Copperfield Chimney Supply brought together two of the most recognizable names in the chimney venting systems, liners and accessories industry, resulting in Olympia taking control of the operations of 12 distribution centers. The expansion caused the two sides to consolidate some of their DCs and outsource their logistics and transportation needs to a third-party logistics provider.  

Olympia was looking for a 3PL that could deliver a nationwide network of existing websites that were capable of fulfilling orders within 24 hours. Additionally, the candidate needed to acquire the ability to receive purchase orders from Olympia’s manufacturing facilities and vendors, process customer returns and ship returns to vendors. The provider would also be required to have the capacity to store all of Olympia’s stock-keeping units, fulfill various order profiles, manage freight planning, work collaboratively with the company’s newly selected enterprise resource planning system, and provide the organization with real-time inventory visibility. Lastly, Olympia’s choice of partner had to be able to manage freight planning, carrier selection and management of inbound cargo deliveries from vendors as well as Olympia’s manufacturing facilities. 

With all these factors in mind, Olympia selected Cornerstone Edge, a supply chain services and technology provider, to help it find a provider that met the aforementioned criteria. 

After the first meeting with Olympia, and learning about what the client was looking for in a 3PL, Cornerstone Edge deployed a rigorous screening process to assess which options would be best suited for Olympia. A thorough investigation of Olympia and its processes was also necessary to ensure that all requirements had been accurately defined, including an analysis of operational process flows, insight into two of Olympia’s primary facilities (Copperfield in Bridgeport, Connecticut and Olympia in Scranton, Pennsylvania) and an overall network analysis of order flow. 

Once the vendor screening had been completed, Cornerstone Edge was tasked with evaluating the vendors and composing a list of viable candidates based on information provided by Olympia. 

Olympia’s data showed that the Northeastern U.S. and California were the two heaviest areas of customer activity. Moreover, data revealed that anticipated combined order volumes during slower seasons ranged from 15,000 to 23,000 orders per month. Those numbers skyrocketed to 78,000 orders per month during Olympia’s peak season.  

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When identifying 3PL candidates, Cornerstone Edge also considered high-level network analyses, the order of magnitude based on facility requirements, transaction volume requirements, a high-level review of inventory mix and stock levels and suggested regional sites. 

When considering these requirements, Cornerstone Edge was able to identify a total of 23 3PLs for Olympia that were screened based on numerous factors, including national footprints (specifically in the Northeast and California); the number of shared facilities they operated; their experiences with Olympia’s style of B2B commerce; their familiarity with Olympia’s type of fulfillment for durable, mostly non-conveyable goods’ the size of the enterprise and their access to supportive technologies and integration capabilities. 

From there, the list was narrowed down to 13 candidates, and ultimately four for Olympia to choose from. The finalists were given requests for proposal bids to respond to, which were subsequently scored by Olympia with guidance from Cornerstone Edge, enabling the company to make an objective decision on which 3PL was the best fit for its needs.  

In addition to helping Olympia reach a decision on the right 3PL, Cornerstone Edge assisted the client throughout the process of drawing up a letter of intent, contract negotiations and project implementation. 

"Cornerstone Edge asked the right questions, understood our needs and guided us through the entire selection process seamlessly,” says Dawn Harris, vice president of vendor strategy for supply chain and logistics at Olympia. 

Resource Links:

Olympia Chimney Supply, https://www.olympiachimney.com/

Cornerstone Edge, https://cornerstone-edge.com/