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Developing a Future Logistics Distribution Model


Certified Retail Solutions, based in Dover, New Hampshire, is dedicated to hardware maintenance and has set the industry standard for 24/7 customer assistance for hardware systems such as point of sale, printers, scanners, customer kiosks, and telephones.

Constructing a Wish List

Despite the fact that Certified's field distribution strategy was capable of fulfilling current needs, the company wanted to look into ways to support long-term expansion without incurring any more fixed costs associated with owning and managing a large warehouse network or investing in new systems.

Certified also wanted to support operations more cost-effectively and efficiently while maintaining the flexibility and scalability required to maintain a competitive advantage.

Getting More Done With Less

Because meeting service level agreements (SLAs) is vital to success, Certified's first priority was to build a distribution solution that would allow the company to retain perfect service while reducing expenses.

One of the key reasons Certified picked FedEx Critical Inventory Logistics® is because of this. Certified has been able to significantly reduce the number of field locations where parts are stored while maintaining four-hour SLA commitments for North American customers by utilizing the solution's network of strategically placed forward stocking locations (FSLs) that provide local or regional access to parts.

"Having a well-functioning FSL network is critical to our ability to deploy components efficiently," says the company "Bill Lovejoy, vice president of Certified Retail Solutions, elaborated.

"Our experts' ability to arrive on location with servicing components in hand is a significant competitive advantage. As a result, our SLA achievement rate and first-time fix rate greatly outperform any best-in-class benchmarks."

Certified has benefited from later shipping cut-off periods by shifting the primary stocking facility from an East Coast location in New Hampshire to the FedEx Global Distribution Center (GDC) in Memphis, Tennessee, which is near to the FedEx Express super hub.

Customers can now place orders for next-day delivery as late as 11 p.m. CST. FedEx Critical Inventory Logistics technologies give customers real-time access into inventory levels, order and transportation status, as well as the ability to generate location-level reports.

Keeping Your Eyes on the Prize

The improvement of Certified's field distribution model has not only had a significant beneficial influence on the company's bottom line, but it has also allowed the company to make a vital emphasis shift.

Certified was organically establishing infrastructure to support the logistics network prior to deploying FedEx Critical Inventory Logistics. The company can now focus on its core competency of providing clients with high-quality products and services.

FedEx, on the other hand, is concentrating on Certified's logistics, correctly controlling and optimizing inventory from reception at all facilities to final delivery to customers and returns, all with the reliability and visibility that FedEx has established expressly for the service parts sector.

Keeping a Future-Focused Perspective

Certified has successfully implemented a comprehensive field service distribution strategy with FedEx that will support long-term goals and strategies for both geographic and business-line growth.

"There's no doubt that FedEx will be able to meet our need for a scalable distribution network that can handle seasonal business spikes as well as our future expansion goals," Lovejoy added.

"We can serve our clients' operations in every region of the world thanks to FedEx's global logistics network."

Certified and FedEx are working together to improve inventory management even more, including options for same-day inventory replenishment.

Improve the efficiency of your field service supply chain

You can rely on FedEx Critical Inventory Logistics to help you meet aggressive service level promises if you require additional visibility, speed, control, and support for your time-sensitive, high-value repair parts and finished goods around the world. Visit FedEx Critical Inventory Logistics® for more information.

Critical Inventory Solution that is Optimized

With the right mix of service, locations, and technology, FedEx Critical Inventory Logistics can help you elevate your critical inventory supply chain. Order and transportation optimization, inventory management, monitoring and visibility, and reverse logistics are all covered, providing you complete visibility and control.

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