A leading agricultural original equipment manufacturer (OEM) contacted NewStream in the midst of its busy season with an issue: Capacity was strained in their newly-built Midwest parts distribution center (PDC). There was a major backlog of packaging work orders and customer order fulfillment was stalled.
After on-site discussions at the OEM’s PDC, the OEM warehouse team visited NewStream’s kitting and packaging operations in Springfield, Missouri. The team was impressed by the processes, flexibility, technology, and culture within the warehouse. A plan was devised to reroute backlogged packaging work orders to NewStream to relieve the pressure from the Midwest PDC.
Two weeks after the Springfield meeting, trucks flowed into NewStream’s facility at the rate of one per week, then quickly flexed to one per day with NewStream setting up a dedicated carrier from the customer’s PDC to Springfield and back to keep the flow of material to the customer’s expectations.
In addition to providing a solution to its single parts packaging, the OEM once again went to NewStream to help with a kitting issue. A sales promotion was scheduled to start for the OEM and specialized kits needed to be in stock for their national sales team. NewStream quickly received and turned kits for the entire North American sales promotion with a turn time of two days.
Lastly, the OEM needed help on packaging requirements for almost all components. NewStream’s in-house packaging engineering team stepped in and made that happen successfully. In fact, it was so successful that the team not only helped write the packaging specifications for the majority of the product, they were also able to help the OEM see an increase in warehouse utilization of their Midwest PDC.
In addition to increasing warehousing utilization by enlisting NewStream’s experienced associates for their single parts packaging and kitting needs, the OEM was able to reduce its labor cost within the Midwest PDC with the elimination of its third shift. The company was also able to focus on customer order fulfillment as it transitioned its single parts packaging from an in-house operation to NewStream’s Springfield facility, resulting in a 75% decrease in its customer backlog over a 60 day period.
A leading agricultural original equipment manufacturer contacted NewStream in the midst of its busy season with an issue: Capacity was strained in their newly-built Midwest parts distribution center.
Transition single parts packaging to NewStream to see an increase in order fill rates, warehouse utilization, and customer service.