Inbound Logistics | July 2024

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SOLVED Supply Chain Challenge?

3PL Partner Is Instrumental in Guitar Amp Maker’s Growth For an American boutique guitar amplifier manufacturer with less than 20 employees, the usual shipping route from Southern California to Japan typically involves enlisting a distributor for execution.

expertise in delivering secure, customized logistics solutions for high-tech and high-value products enables Bad Cat’s customers to receive their shipments in pristine condition. The partnership is constantly evolving to promote growth and efciency. From onboarding Bad Cat to electronic data interchange and data connectors to integrating their ERP with SEKO’s custom WMS to create a seamless outbound process, SEKO serves as a valuable source beyond their role as a logistics service provider. “It’s no exaggeration to say that without SEKO, we might still be searching for the right logistics partner and struggling to re-enter the Japanese market. SEKO has helped us unlock Japan while retaining control over our brand direction,” said Matthew Smith, Bad Cat’s Director of International Business Development. With support from SEKO, Bad Cat can focus on making killer guitar amps that inspire their customers and trust that new product launches will be enjoyed by musicians around the world.

THE CHALLENGE Bad Cat Amps, which traditionally worked with a distributor, learned this practice can create a distance between the supplier, retailer, and potential customers—ultimately resulting in stray branding and inventory dependent on bias preferences and budgets. In Bad Cat’s case, this disassociation nurtured the loss of brand control in one of the most critical and competitive musical instrument markets. Faced with the alternative of selling directly to retailers, Bad Cat Amps lacked the capability to manage the necessary logistics, along with backstock capacity in a country where physical space is at a premium. While some of the biggest brands can maintain distribution centers in Japan, this isn’t feasible for smaller companies like Bad Cat. Despite their size, Bad Cat had ambitious growth plans and needed a third-party logistics provider (3PL) with a global logistics network to help them scale. Specically, they required a way to distribute products in Japan that enables the team to maintain brand control and ensure superior service and stock availability. The rise of direct- to-consumer (DTC) sales in Japan presented a growth opportunity for Bad Cat’s premium brand. Beyond enhancing their reputation, having all SKUs ready to ship throughout the country within 24-48 hours creates

a competitive advantage and secures valuable sales opportunities. Therefore, their distribution strategy required a logistics partner capable of handling both business-to-business (B2B) and DTC sales. THE SOLUTION A company founded on being small enough to care and big enough to scale, SEKO Logistics helped Bad Cat develop a winning distribution strategy, providing comprehensive support from fulllment to nal mile in Japan. By integrating into SEKO’s global B2B and DTC network, Bad Cat boosted their growth while reducing the external companies within their distribution network. Streamlining their operations allowed Bad Cat to surpass their total sales from the previous 18 months with just one retailer. Despite Bad Cat’s initial low volumes, their premium product, which is heavy, handmade, and relatively fragile, requires secure transport overseas. SEKO’s

To learn more: hello@sekologistics.com 630-919-4800 sekologistics.com

66 Inbound Logistics • July 2024