ETALES [ IN PRACTICE ] When MJ Holding Company, LLC, the largest North American distributor of trading cards and novelties to retail stores, set out to build a new warehouse in 2019, it decided to augment its ability to ship directly to consumers.
E-Commerce and Warehouse Expansion: It’s in the Cards
THE CUSTOMER MJ Holding Company, based in Bedford Park, Illinois, is the largest North American distributor of gaming, sports, and entertainment trading cards, related trading card supplies, collectibles, toys, and hot trend items. THE PROVIDER Alpine Supply Chain Solutions, based in St. Charles, Illinois, is a consulting company that oers personalized supply chain solutions using a data- centric approach.
soon brought in Alpine Supply Chain Solutions to optimize the facility’s storage methodology as well as its work ows and ef ciencies. FILLING A VITAL GAP In business since 1993, MJ Holding’s retail distribution footprint extends across 8,000 retail store locations in the United States and Canada. It includes chains such as Walmart and Target. Trading cards and related merchandise are a unique category subject to speci c retail waves and promotions. It’s not unusual for more than 550 new products to be released annually. “Traditional supply chains for our retail partners are not built for quick turn and/or quick change items, explains Zabloudil. “We ll a vital gap for them.” MJ Holding manages space in the stores under its distribution wing, gets product out to them and removes it as it sells through its life cycle. The sheer depth of MJ Holding’s inventory and the subtleties of its supply chain called for a thorough data analysis before the rst materials handling equipment or storage system could be installed in its new warehouse space.
The strategy delivered an unexpected boon in 2020 when the pandemic struck and interest in trading cards suddenly soared. When old and new collectors alike couldn’t leave home to make purchases, MJ Holding Company was well positioned to help its retail partners meet demand. Expanding its e-commerce operation was one of four objectives MJ Holding hoped to achieve in its new 360,000-square-foot facility. The primary goal was to reduce the company’s reliance on outside storage. Plans to streamline and improve both its pick- and-pack and assembly operations were high priorities as well. AT FIRST AN AFTERTHOUGHT Bolstering its e-commerce capabilities was a bit of an afterthought but, as it turned out, it was an excellent decision. “We were conducting business out of ve buildings and that needed to change,” says Mark Zabloudil, chief operating of cer for MJ Holdings. Initially, he turned to Scott Lee, president of Conveyor Solutions Inc., a materials handling and storage system integrator, to assist with consolidating operations under a single roof. Lee
by June Allan Corrigan
July 2022 • Inbound Logistics 205
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