Mass Retail Industry November 5, 2010
For Superior Service Levels at Best Buy/Future Shop
We are very proud to announce that our customer was recently recognized by Best Buy/Future Shop Canada who gave them their"Best in Class" award for compliance excellence. To achieve this prestigious award, they needed to have less than 2% combined missed appointments, late arrivals and pick accuracy.
At McKenna, we believe that we've streamlined the Pick and Pack process to the point where we can say with confidence that we are experts at successfully executing large volume shipments to Best Buy/Future Shop. By combining our warehouse presence in Mississauga and Vancouver with a very experienced Freight department, we feel that servicing the clients of Best Buy/Future shop will continue to be one of the strongest areas of growth at McKenna.
When one of our clients, whom Best Buy Future shop represents 80% of their sales, came to us looking for a 3PL solution, on time delivery was one of the biggest challenges. They found themselves consistently relying on a number of uncontrollable factors, such as the whims of rail service, to get their containers into their warehouse in Ontario. By the time they got their hands on their product, they were often already late. As McKenna worked with them, we suggested that given the origin (China) of their containers and the fact that at about 40% of the product went into the Best Buy West DC, that perhaps the better strategy was to warehouse in Vancouver. Initially, in year one, our goals were modest. Our plan was to improve the on time delivery by a couple of points and to work on the assumption that the freight costs would be roughly equal to what they were spending under their old model. As the year progressed, we realized that improving on time delivery was moving ahead as planned. However, an added bonus was that as our freight department worked diligently with our partner carriers, we were able to give our client the added benefit of significantly reducing their freight costs.
We believe that this is increasingly the model for the future. With population growth on the rise in Western Canada, there is every reason to expect sales to increase proportionately. But with far more truck and rail freight moving West to East than there is East to West, there remains enormous opportunity to take advantage of favorable freight rates from Vancouver to Eastern Canada. More than ever, it's worth having a second look at your freight costs and compliance requirements, and considering a strategic partnership with McKenna in Western Canada - you will be pleasantly surprised at what we can offer.