Dec 15, 1996

Delivering the Goods

 

From that point on, the company really took off. Trumper and Smith quickly moved their small business to a 6,000-square-foot warehouse in Bothell, Wash., a suburb of Seattle, and began expanding the customer base. But it wasn't long before they outgrew that space, too. This time they moved to a 40,000-square-foot warehouse in Monroe, Wash., northwest of Seattle. In less than a year, the company began building another 40,000-square-foot warehouse next door; today the two are connected by a short tunnel.

With the tremendous growth came extraordinary shipping demands, and the limited Pitney Bowes system wasn't going to cut it. So Jim Mesick, an FMC promotional sales representative who dabbled in computers, was recruited to beef up the automation in the shipping department. Mesick entered into shipping contracts with the big overnight shipping companies, including FedEx, UPS, and Roadway Package System. Each shipper gave FMC a 486 PC that came loaded with the shipper's rates. One by one the computers and scales lined the small warehouse table. "It became a joke," says Mesick. "We couldn't keep working that way. We were shuffling computers around a small table."

A lack of table space was the least of Mesick's problems. He also couldn't connect the disparate systems to FMC's UNIX-based accounting program or order-entry system; nor could he compare shipping rates without physically moving from computer to computer.

The computer overload couldn't have happened at a better time. Because of the boom in the overnight-shipping industry, software had been developed that eliminated the need for multiple computers. So Mesick returned the pool of shipping hardware and purchased one shipping automation system--a DOS-based system called Aristo Parcel Shipping System (Aristo Computers, 800-3ARISTO; $1,000 for software only, $5,000 base price for the hardware and software)--from Distributech, a regional reseller of shipping automation systems (800-868-8282; $4,000 base price). Mesick installed the software on one 486 computer and loaded the shipping rates of all his carriers onto it. Not only can FMC staff now quickly scan for the cheapest carrier for any specific delivery; they can also transfer data from the Aristo system to and from the company's UNIX mainframe network.

These days when impatient customers need to know when their parcels will arrive, they simply call an FMC customer-service representative, who can quickly give them a package tracking number. If a package has been sent through an overnight carrier that allows tracking through a Web site, such as UPS or FedEx, the customer can just key into the Internet and in an instant know when to expect the order. "We wanted technology that would get our customers the information they need when they need it," says Trumper.

The system cuts credit risk, too. The Aristo software automatically dials in for credit-card verification before a package is sent out.

For Trumper and Smith, the investment in information technology has had a clear payoff. In the past five years FMC's warehouse has grown to more than 10 times its original size while the warehouse staff has barely doubled, to 10 employees. "In an industry that has flattened out, the technology keeps us growing strong and under control," says Trumper.

The message is clear: as shipping demands increase, automated systems are a way to keep tabs on your product and forge strong relationships with your customers. Whether you use a third-party carrier or stick with your own fleet, automated shipping systems let you do more for less money with fewer people. For small companies, upgrading can mean the difference between taking on new business and turning it away.


RESOURCES

Web Sites

Two prime overviews, including software, consultants, and news: Transport News

Also take a look at The Internet Guide to Transportation , a well-organized, comprehensive listing of Internet sites related to transportation, logistics, and shipping.

Software

Some of the best-known logistics-software vendors:

FourGen Software , Seattle; 800-333-4436; kiml@fourgen.com;

Cass Logistics Software , Chicago; 312-454-9000; mweigers@casssoftware.com;

Tranzact Systems , Homewood, IL; 708-957-7500; miker@bbs.trazact.com;

Roadnet Technologies , Timonium, MD; 800-ROADNET; market@roadnet.com;

Automated Parcel-Shipping Systems

These companies have been in the automatic parcel-shipping business the longest and offer some of the most sophisticated systems available.

Aristo Computers , Beaverton, OR; 800-327-4786; sales@aristocom.com;

Tracer Research , Marlborough, MA; 508-229-4400; sales@tracerx.com;

For more information about automated systems and a comprehensive list of manufacturers, contact the Affiliated Independent Mailing Equipment Dealers, a product-emphasis group of the Business Technology Association, in Kansas City, MO; 816-941-3100; info@btanet.org.

 PREV  1 | 2 | 3 | 4 | 5