Last November, Parksite, the Tampa, Fla.-based building materials company transitioned its distribution to Kenco Logistics, and the results been "outstanding efficiency and effectiveness," according to general manager Troy Underwood. Prior to this move, Underwood says the company had relied on several stand-alone third-party logistics providers to warehouse, deliver and install its product. These independent 3PLs typically offered a narrow range of services that were too transportation oriented. Deliveries by these smaller 3PLs also commingled Parksite's orders with products for other clients that were not always compatible. Finally, Parksite's order volume grew to the point that a change had to be made.
"We had difficulty getting our product prioritized and delivered, experienced inventory management issues, and had trouble getting timely proofs of delivery and bills of lading," says Underwood. "Although we tried to streamline operations, processes varied widely among the 3PLs and their locations."
Parksite's management realized that it needed a more dedicated model to overcome existing service issues and to handle the steady growth going forward. Underwood investigated numerous 3PLs and solicited bids based on a performance prospectus the company developed.
"Kenco stood head and shoulders above the rest," says Underwood. "They had the perfect blend of warehousing, inventory management, order processing, delivery and installation experience to assist us in establishing a significant presence in the Florida builder market. Moreover, they were the only bidder that included a three-year detailed plan of execution along with projected costs."
A good plan is one thing, but Underwood says that Kenco immediately delivered on its promises. The 3PL's execution was impressive. Kenco seamlessly transitioned Parksite from a distribution network built on many independent service providers to a centralized model.
"Kenco acted quickly and applied all of the proper resources," says Underwood. "They continue to be instrumental in helping us locate the proper facilities and control costs."
He adds that Kenco shared several best practices that have allowed Parksite to lower the cost of its warehousing and delivery, and that have improved service levels.
"Most importantly, Kenco has accomplished all of these tasks while staying within the budget parameters in their pro forma bid," says Underwood. "I highly recommend Kenco and consider them a great supply chain partner."
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