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Logistics 2.0: 5x5 Interview with FLEXE Warehouse Partner Kaye-Smith

In this weeks episode of Logistics 2.0, we discuss how FLEXE warehouse partner Kaye-Smith has increased warehouse utilization by 40% and created an entirely new revenue stream since listing its space in the FLEXE warehouse marketplace. Watch here, or read the transcript below!

Karl: Welcome to Logistics 2.0, I'm Karl Siebrecht with FLEXE. Today, I'm here with Mike Lawson, who's an Account Executive with Kaye-Smith, who is a warehouse partner of FLEXE. Thanks for joining us, Mike.

Mike. My pleasure, Karl.

Karl: I would love to just hear from you a little bit about your business, just describe what Kaye-Smith does.

Mike: So Kay Smith has been around since 1987 with the name. We started in the printing industry. Through time, we've evolved with our clients, got into some direct marketing, data processing. Of course, we still have the print facility, but then, of course, we have all that support for both those divisions. We needed a warehouse, so we have about 10,000 rack spaces here in the facility. Along with that, we have a hand fulfillment division. All that supports all our other work.

Karl: Got it. Great. And so give us a sense of how the warehouse has been from a capacity utilization perspective over the last couple of years.

Mike: So we've been in this particular facility for about 13 years, I believe. I don't remember the exact number, and we've always ran it probably at about 60%, you know, give or take. We'll have some spikes due to some projects, but you're talking hundreds of pallets. So the FLEXE deal sort of came about, and we talked as a company about it. And decided, you know, this is a good move. We can't spend a lot of time looking for a warehouse. There's just not a lot of money for us in that, but we understood that FLEXE is out there doing the work for us. We just became a partner of theirs. And so now our capacity is up to 85%, which is a good number. We still have room for some existing client growth, new business of ours that utilized the warehouse, but we also have some space for clients of yours too. And we still have that ability to take on more, if need be.

Karl: This makes sense. So you started working with FLEXE last year, and how has it been from an operational perspective?

Mike: You know, of course, there is always we have one way of doing it, you had another way of doing it.

Karl: Yeah.

Mike: So we did the intro on the software, and it seemed real basic, simple, easy, which is huge. Integrating ours wasn't an option, so we came up with the solution to utilize your system. But we're still using our back end. We have to for our operational sense. This is what these guys know, right? Man, after the first three loads, first few orders, one of your employees was on-site with us, Matty.

Karl: Yep.

Mike: It was great. We got to kind of go through everything and so this is how it works. It's flawless, easy, simple. There's always something, let's be honest. There's always something, no data ever goes without any obstacles. But they've been quick to be resolved, and we've been happy. I think Flex has been happy. I think FLEXE's client has been happy.

Karl: That's great. From a business impact standpoint, how would you characterize the relationship?

Mike: I think it's been a nice benefit, you know. When you look at the space we had out there, we had bins that were empty. So they're billing out zero dollars. With FLEXE we can utilize that bin and make something off of it. Not to mention, you know, it keeps the warehouse folks busy. Sometimes we're too busy, which is a great problem, but there's other times where just FLEXE is fulfilling a need to keep those guys going. And being a privately held family company, we like our employees. We want them to have work. We want them to continue to grow.

Karl: If you enjoyed the content, subscribe to our channel. Please post your comments below. That's it for this week, I'm Karl Siebrecht with FLEXE. Thanks for watching Logistics 2.0.