
Customizing Services to Align With Customer's Strategy
The Problem
LockerMate markets in-locker organization solutions and storage products
that are sold through national and specialty retailers. The company outsources
all manufacturing, packaging and distribution responsibilities. Offering
a "back-to-school" product line with a short, intense sales
season, LockerMate's suppliers were counted on to accurately complete
production and meet tight delivery deadlines.
However, when LockerMate approached Donnelly in 1995, it was experiencing
significant supply chain problems. LockerMate was dealing with spotty
quality, delivery delays and partial order shipments from its three different
suppliers. They knew these issues would not only inhibit their growth
but would strain relationships with retailers who need to make sure shelves
are stocked.
The Donnelly Solution
Upon learning of Donnelly's unique turnkey manufacturing capabilities
LockerMate met with Donnelly's leadership team to review needs and abilities.
After a careful and thorough review, LockerMate consolidated all procurement,
molding, assembly, packaging and order fulfillment with Donnelly.
In addition to utilizing existing tooling, Donnelly was able to help
design and source new products from Asia. Donnelly and LockerMate worked
closely together to develop production and inventory controls as well
as a customized order fulfillment process. The program was implemented
in the spring of 1996.
The Results
With Donnelly providing a turnkey solution, LockerMate's production and
delivery problems were immediately eliminated. In the first year,
customer
performance skyrocketed to world-class levels—no late deliveries, no
quality returns and zero chargebacks. The end result for LockerMate:
Increased
shelf space with existing customers. And sales that have doubled!
Donnelly has provided this level of service ever since. When LockerMate
began the process of replacing its flagship product, the Double Shelf
storage unit, Donnelly was involved in the design process and helped improve
the aesthetics and create patentable features.
According to LockerMate President and CEO, George Wood, "We had
the right strategy, but the wrong partner. After meeting with Donnelly,
we knew the performance reward far outweighed the risk of changing suppliers.
The success we've enjoyed wouldn't have happened without Donnelly's commitment
and expertise."
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