As the leading manufacturer of building materials in North America, this company produces roofing materials, vinyl and cement siding, trim, fence, railing, decking, foundations, insulation, gypsum, ceilings and piping products. World-class processes and a superior customer experience have been keys to the company's success from day one.
This customer secured a large contract with Menards to distribute manufactured goods to the well-known retailer. Only one problem: They didn't have the internal capacity to handle all the volume or the spikes in demand.
Along with the large volume, orders going out to specific Menards locations would not drop until Thursday for next-week shipments. This meant outbound orders could fluctuate drastically, not to mention the variations in volume resulting from a volatile manufacturing process. To make matters even more complicated and stressful for our customer, its hourly workforce did not allow the company the flexibility it needed to meet customer demands while keeping costs under control.
The company called on Wagner to help it tackle the complex warehousing and distribution challenges and run the operation supporting its Menards account.
The plan began with the Wagner Sales team sourcing a 180,000-square-foot facility within 15 minutes of their manufacturing plant to handle the volume. Within a matter of weeks, Wagner purchased the equipment and hired the workforce to ensure a smooth, seamless startup. Wagner was also able to offer the space needed and the staffing flexibility to meet customer requirements at the right price. It was a win-win for both organizations.
- Within 30 days of being awarded the business, Wagner was fully operational and supporting the company's new Menards business
- As the retail customer's needs demanded, Wagner's weekly work schedules were changed from five to seven days per week at no additional cost to the customer
- This company was given the ability to change over base inventory from Menards SKUs to other customer SKUs, which increased the total SKU count from 33 to 64. This change also resulted in an increase in ship-to addresses and various associated demands, including customer pickups
- Wagner was able to receive product from multiple manufacturers rather than just the original plant and distribute back to the company’s internal supply chain and the end customers
- An additional 80,000 square feet of space was sourced for a summer inventory build for fall sales. The facility was up and operational within three weeks of notification
- Working with and managing various manufacturing plants, brokers and carriers, Wagner has coordinated the movement of product to consistently ensure the right product is in the right place at the right time
- Staffing is increased and decreased on a daily, sometimes hourly basis to meet volume changes in the most cost-effective manner possible
With Wagner handling warehousing and distribution functions for the Menards business, this customer is able to focus on its core competencies without worrying about having enough product on the shelves of this important retailer.