Trusted relationships can be a game-changer when multiple 3PL warehouse companies with expertise in different markets work together for the benefit of a client. This case study focuses specifically on how Evans Distribution Systems, a leading 3PL company near Detroit, MI, faced the challenge of expanding its distribution network while maintaining high standards of service. Their creative approach to this challenge was to leverage the AWI Network—a tight coalition of hand-picked, trusted third-party logistics firms that enabled them to identify ideal partners for seamless integration. This case study illustrates how strategic alliances with Barrett Distribution Centers in New Jersey and States Logistics Services near Phoenix, facilitated by the AWI Network, yielded geographic diversification, enhanced efficiency, and heightened customer satisfaction.
BACKGROUND
Evans Distribution Systems is a 3PL warehousing company founded and established in the Detroit Michigan area. It currently has eight warehouses throughout the Metro-Detroit area. Having an ever-growing, seasonal fulfillment client with a direct-to-consumer business model, and a large customer base that expands throughout the United States, Evans needed a distribution network that allowed it to get its client’s goods from coast to coast faster and cheaper than it ever could just out of Michigan. All the while still providing the same great service the client has come to know. Evans needed to make sure the operation was seamless across the network.
THE 3PL WAREHOUSE PROCESS
Through network analysis, the creation of shipment maps, and a comprehensive cost analysis of freight from various origins, Evans identified ideal locations for satellite operations. Once the two geographical locations were determined, a Request for Quotation (RFQ) was prepared. Before sending the RFQ to a list of qualified 3PLs in the identified markets, Evans first reached out to fellow members of Associated Warehouses, Inc. (AWI).
AWI is a network of more than 50 vetted 3PL warehousing companies companies throughout the United States, Canada, and Mexico. Although AWI’s primary mission is focused on providing strategies, insights, and support to manufacturers and shippers interested in outsourcing logistics, network building amongst the AWI “family” is also a priority. Over its 40+ years as an AWI member, Evans has developed trusted, collaborative relationships with fellow members, and was able to quickly and confidently identify the right partners to support its client.
THE SOLUTION
“Our goal was to find partners that would help Evans expand its fulfillment strategy by mitigating business interruptions, enhancing order processing, reducing delivery time, and minimizing freight expenses,” says Leslie Delekta, Director of Customer Solutions at Evans Distribution Systems. After careful review, two 3PL providers were selected – Barrett Distribution Centers in New Jersey and States Logistics Services in Arizona.
“It just made sense.” Like Evans, Barrett Distribution Centers and States Logistics Services are family-owned third-party logistics companies with similar strengths and values. “Evans has long-standing relationships with Barrett and States through AWI, and both companies have stellar reputations in the industry. We knew they would be reliable partners – partners we could trust,” says Delekta.
Barrett has been providing customized warehousing, fulfillment, and transportation services since 1941. “We decided to partner with Evans because we had the capacity to handle the high volume of orders and our location allowed for easily distributing across the East Coast,” says Alex Glanzer, Operations Manager at Barrett Distribution. “In addition, we liked the financial viability for both companies, the ease of integration and setup of the account, and because Evans is a smooth, responsive, and efficient company to partner with.”
States has been providing logistics solutions to the West Coast since 1958. “We had been discussing collaboration opportunities with Evans for years and this project fits well with our current operations,” says Kirk Hellofs, Vice President Operations at States Logistics. “Evans is flexible, communicative, supportive of its partners, and shares the same goal as States: exceed customer expectations.”
Outcome: Enhanced Efficiency in 3PL Warehousing
“The fulfillment network solution has been a huge success,” says Delekta. “In leveraging two of our AWI partners, Barrett and States, we have been able to provide our client with geographic diversification, enhanced efficiency and scalability, high-quality service, and a consistent experience.” All network-related objectives were accomplished in the first year, including:
- Establishment of a flexible operation capable of transferring orders between warehouses
- 61% increase in order processing efficiency
- 20% reduction in delivery time
- $400K cost savings in freight
Mark Richards, President of Associated Warehouses, Inc., goes on to say “AWI is more than just a network; it is a family.” It is a family of qualified and trustworthy warehousing companies built over thirty-five years that collaborate to bring clients a solution they would not otherwise have available if the network did not exist.
