Getting in Thick SimplyThick is a small company with large logistics needs. As the developer and marketer of a food and beverage thickener for people who have diffi- culty swallowing, the St. Louis-based firm needs a 3PL that understands its specialized product and its importance in customers’ daily lives. “We want to make sure we have the right partners who can get our prod- uct out the door according to schedule,” says John Holahan, SimplyThick’s inventor and founder. “When we choose a 3PL, we look for a good match in size and flexibility, and an under- standing of our product.” After parting ways with its first 3PL, a large organization that Holahan says failed to provide the service and attention SimplyThick required, the company went shopping for a new provider. SimplyThick examined sev- eral candidates before deciding that
added functions frees up valuable time to devote to other areas of our business,” McGloine says. “This allows us to better utilize our staff.” The arrangement also provides direct financial benefits. “We avoid spend- ing time and money that we would otherwise have to invest in land, rent, building, staff, maintenance, and administrative costs,” McGloine says. “This partnership allows us to continue to grow our business.” Evans also serves as “Valor’s eyes and ears,” says Leslie Ajlouny, Evans’ vice president of business development. Valor’s products, which are imported primarily from Asia, are frequently subjected to rough handling and con- taminated environments before arriving in the United States. “We visually examine the products just before Valor’s customers receive them,” Ajlouny says. “We’re the last line of defense.”
and us personally,” Klingel says. The companies’ tight relationship comes in handy whenever Siamons faces a new business challenge. “Any time we face a new issue, we set up a conference call,” Klingel says. “CaseStack offers advice on how to han- dle a situation, based on its experience with other customers facing the same challenges.” Valor and Value As a Tier II automotive industry sup- plier, Valor Manufacturing operates in a challenging just-in-time logistics envi- ronment. The constant pressure requires the company to demand maximum productivity and efficiency from all its activities and relationships, including its 3PL agreement. “Valor is a young company, established in 2000 as an importer of automo- tive exhaust components,” says Cindie McGloine, supply chain manager for the
Using a 3PL frees up time and money we would have to invest in land, rent, buildings, staff, maintenance, and administration. We can devote our time to growing the business.
firm, which is based in Dundas, Ontario, Canada. In 2003, after experiencing service- quality problems, Valor terminated its relationship with a Kansas warehouse operator and began scouting for a 3PL that could help it not only move and store products, but assume a variety of value-added responsibilities. After considering several provid- ers, Valor settled on Evans Distribution Systems, Malvindale, Mich. Valor relies on Evans for numer- ous services beyond transportation and warehousing, including repack- ing, inspection, EDI support, Web site operation, and an interactive inventory system. “Having Evans perform these value-
Such attention helps Evans forge a tight bond with Valor, so tight that the 3PL often becomes involved in the com- pany’s decision-making processes. As Valor faces new challenges, such as the adoption of RFID and other emerging technologies, Evans will be there to help meet them, McGloine says. “As our OEM automotive and Tier I customers embrace new technologies, we will need these added services to keep up with their requirements,” she notes. McGloine credits Evans with help- ing Valor thrive in a highly competitive market. “Our business has grown expo- nentially over the past few years,” she says. “We are still growing, and we need our 3PL services to grow with us.”
TAGG Logistics of St. Louis most closely matched its needs. “We’ve worked to develop sys- tems and technologies that work well for both companies,” Holahan says. “Everybody at TAGG now knows what SimplyThick is, and how crucial it is to our customers.” In addition to typical 3PL services such as transportation and warehousing, TAGG also provides several value-added processes to SimplyThick, including kit- ting, packing, and order fulfillment. “Businesses are outsourcing more, and 3PLs have to be willing to broaden their service offerings,” says Gary Patterson, president of TAGG. “We offer one- stop-shopping to companies such as SimplyThick.”
78 Inbound Logistics • July 2007
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