Case studiesOctober 07, 2015
Global Point Saves Thousands Through Re-Engineered Distribution
New York-based Global Point Technology has been a leader in sourcing components and assemblies for OEM manufacturers from Asia for over 30 years. With direct factory relationships as well as six jointly owned facilities in Asia, they combine the best of western standards and ownership with the cost benefits of manufacturing in Asia.
Global Point has deep relationships with automotive, telecom, defense, medical and office automation customers across the US, providing a wide range of services beyond sourcing. Through their logistics division, they offer warehousing services including the stocking of buffer inventory and JIT delivery to anywhere in North America.
Given the steady rise of transportation costs and Global Point’s desire to keep costs low for their customers, they decided to look for new creative solutions for providing JIT shipping to customers. Particularly for customers located far from their New York warehouse that needed regular LTL shipments of components, the shipping cost was becoming an unacceptably large portion of total costs.
As Global Point researched better options for fulfilling LTL orders for a large client based in Los Angeles, they discovered FLEXE, a Seattle-based company that specializes in flexible warehouse solutions. Through their innovative approach and technology platform, FLEXE connects companies in need of flexible warehouse storage with businesses looking to monetize their under-utilized warehouse space.
Leveraging FLEXE’s secure online system, Global Point was able to research various warehouse options in the LA area, get price quotes, find a facility that matched their requirements and high standards, and make a reservation to store its client’s components. With this secure, flexible storage capacity reserved, Global Point was then able to completely reengineer their distribution services for their client. Instead of regularly shipping LTL pallet orders from their New York warehouse to Los Angeles to meet the client’s JIT delivery needs, they now ship full containers of the components directly from the Port of Long Beach into the FLEXE facility in Los Angeles. Then, utilizing the FLEXE online platform, they are able to schedule local LTL shipments from the LA warehouse direct to their client with a 1 to 2 day lead-time.
With FLEXE, Global Point has generated significant cost savings and tremendous new flexibility for their client. Specifically, they:
- Saved thousands in shipping costs for each order, by shifting to local drayage and LTL deliveries instead of cross country shipments
- Decreased inventory carrying costs 20% by cutting 2 weeks of transit time out of the path between their plant and end customer
- Increased JIT flexibility for their client by decreasing order lead-time by 50%
- Increased service levels by maintaining direct control of inventory in remote locations, easily accommodating last minute order quantity changes and unplanned urgent shipments
Given the network of facilities within the FLEXE marketplace, Global Point now has reliable, “virtual capacity” at the ready in several key markets and can replicate this success with others across their client base.