A52 Warehouse recently announced that it will be providing 3rd party logistical services for Dakine in the Canadian Market. We caught up with Business Development Manager Sean Miller of A52 to learn more.
1. What made A52 stand out as the ideal partner for Dakine in Canada?
First and foremost, I think the key word in the question is “partner.” We have a service contract in place that defines the pricing and the outline for our relationship but I think that it has a lot to do with what isn’t in writing.
Dakine has a unique product mix because of the physical dimensions of their goods. Some 3PL companies who specialize in apparel and footwear may not be set up to handle the volume of large items that Dakine requires. We didn’t want to make any assumptions so we took a close look at a plan to address this critical aspect of their handling requirements. That plan will evolve as we work with the product. Adapt and create is one of our core values and relates to this aspect of our partnership. We want to over deliver with our service to Dakine and innovation will be critical when we look to offer solutions to them.
Our WMS software and our internal IS team was another key consideration for Dakine. When you have a remote warehouse, you are ‘blind’ to what is going on with your product. Our WMS software gives clients a live window into our operation. It is a tool that can be used throughout their organization from the CFO to Sales Management to Customer Service and even their Sales Agents. It’s simple to use and search, plus it is Web-based and can be accessed from any place that has Internet access.
Also our ability to offer a custom solution with system integration was a consideration. Dakine is in the midst of implementing a new ERP system and during our set up we’ll be offering a short-term solution with their current system while we look to a more in-depth, long-term set up with their new ERP.
The pricing was very important but if we were not able to deliver to Dakine’s expectations, then the price might as well have been free. We will work with Dakine to get their products to their customers consistently, accurately and on time. All of those actions will help them save money. The net result has financial benefits, and the path to getting there will be much easier.
2. What should brands look for in general in a 3PL?
Price is usually the most important factor a brand looks at when they do their first search for a 3PL. Once a brand has dealt with poor service and under-delivering on execution, they will start a new search with different priorities. We believe the top four considerations would be:
- Custom solutions – Every business is operationally different. Organization size/ set up, ERP system, integration requirements, retailer partnerships, e-commerce and strategic goals are all unique to different brands. Not all logistic solutions are created equal but they should serve the purpose of getting your products as fast and efficiently as possible to your retailers and consumers. Your 3PL partner should be able to provide proven examples of how they have tailored solution for other clients and also outline the best plan specific to your business. Makes sure they understand the requirements that are unique to your products and business. It will only further help your potential partner assemble a successful strategy.
- Take a tour – A brand should tour the facility where their product is being handled. This is a good opportunity to meet the teams who will ultimately have a touch point with your product. The first expectation is that the operation looks clean and well organized. From there a brand can see how the warehouse is set up and discuss how their products / systems would mesh together. It is also a chance to get a gut feeling about the people within the organization. It may not have a metric but it will give you greater confidence in your prospective partner.
- References – Saying and doing are two very different things. We hope our actions speak louder than words and we’d suggest that brands ask their 3PL partners for references. You’d ask for references for any prospective employee. Why wouldn’t you ask for references from the business that is seeking to become a critical part of your supply chain?
- Price – If the first three points are satsified then get down to price. Quotes can be very confusing and A52 looks to offer a simple approach to pricing. The best way to compare pricing is to provide the potential partners with some real data / examples and have them provide pricing based on that information. That way you can get a real comparison.
3. This partnership sounds exciting. When do you begin?
We are well on the way with Dakine’s systems integration. The first round of product is arriving this month and we will ship out the first orders for their Summer 2014 program. This will be an ideal season to start with and lead us to Dakine’s key Fall and Winter deliveries. The team at A52 is excited to have Dakine as a partner and there is great alignment between our companies and cultures. We’re looking forward to doing some great work together.
