PBB Global Logistics

CA

PBB Global Logistics has just made on-line ordering and inventory management that much easier with the launch of its latest Internet-based application - e-Fulfillment solutions. This new system promises to benefit a wide variety of on-line businesses and traditional 'brick and mortar' companies.

A part of the e-globallogistics. comTM range of on-line tools, e-Fulfillment uses the Web to improve efficiencies within the supply chain. The system increases order accuracy by cutting down on data entry, labor costs and product handling. PBB's e-Fulfillment also allows for real-time data and inventory tracking, fewer back orders and shortages, and provides up-to-date management reports. Orders are filled much faster which leads to a greater rate of customer satisfaction.

'Whether you're selling to other businesses or direct to consumers, PBB's e-Fulfillment delivers the on-line tools you need to effectively and efficiently manage your inventory, fill orders and ensure accuracy, ' says Mike Scott, President and CEO, PBB Global Logistics.

e-Fulfillment also offers flexibility in meeting a variety of supply chain needs. For B2B customers, the system provides a Web-based order entry system that allows partners throughout the supply chain to purchase and fulfill orders inventoried at a PBB Warehousing & Distribution center. This system allows customers to process business-to-business transactions and manage related inventory via the Web.

The system also offers a secure Web-based storefront service that is ideal for e-tailers operating in a business-to-consumer (B2C) environment. This is a convenient and reliable solution for reaching new markets and generating on-line sales though a credit card payment gateway.

ntegrated warehousing, inventory management, order fulfillment, end delivery and return logistics services all ensure superior customer service and cost efficiency. Another innovative service is PBB's 'Virtual Warehouse', where clients can interface PBB's inventory management technology through the Web with their own warehouse facility. Customers can utilize this efficient solution to manage their warehouse and distribution functions on-line without having to invest in costly up-front inventory management information systems software. The entire suite of solutions can be accessed from anywhere in the world through PBB's easy-to-use Web-enabled secure interface.

'Many of PBB's clients are already benefiting from this exciting new proprietary technology, ' says Mr. Scott of the innovative system. 'We're very proud of e-Fulfillment's success'.

One such client is Scouts Canada, who used the system to manage its nation-wide distribution of uniforms, badges and a myriad of other supplies faster and more efficiently.

As PBB discovered, storing beauty products isn't a simple matter. Cosmetics have to be kept under strict temperature- and climate-controlled conditions.

And Club Monaco Cosmetics new skin care line requires even more special handling. 'These products must be stored separately from cosmetics, ' says Lagac, 'as well as under very high standards of cleanliness. As high-value products, they both have to be kept under tight security.'

Club Monaco Cosmetics' product line is complicated and ever-changing. There are about 400 different stock keeping units (SKUs) with a 15 to 20 percent fluctuation each year.

'We were looking for a partner that shared our philosophy...' Ron Lagac, vice-president and general manager, Club Monaco Cosmetics Inc. Added to that are other complications unique to the beauty business such as the seasonal change--four times a year--in the colour palette. 'If you ship the wrong stock at the wrong time, ' says Lagac, 'you're in deep trouble.'

To reduce handling of incoming stock and get it into stores more quickly, retailers have set up strict 'vendor compliance' rules. Many of these deal with times of delivery, size of boxes, maximum height of goods stacked onpallets and the placement of bar codes on boxes. Beyond that, stores are moving aggressively to eliminate paper by mandating the use of e-commerce tools such as EDI and ASN.

Although a basic level of standardization exists among information technology (IT) protocols from different department stores, vendors must still adapt to individual variations. 'One of our strengths is our in-house programming capability, ' says Ron Mazurek, PBB's corporate manager of distribution in Mississauga, ON, 'that gives us the flexibility to adapt to all these variations.'

Scouts Canada, Club Monaco Cosmetics, Sanmina Canada ULC

Club Monaco Cosmetics turns to PBB to meet all of its supply chain requirements.. Materials Management and Distribution, March 1999. By: Ken Mark. Behind every beautiful face stands an exemplary supply chain system. And to ensure its foray into the beauty business was successful, Club Monaco Cosmetics Inc. signed on a third-party logistics service provider to distribute its products to department stores in Canada, the US, Europe and Asia.

As government regulations and business practices grow more complex, Club Monaco Cosmetics decided to stick to what it knew best manufacturing and marketingand outsource its supply chain requirements to experts. We wanted a company that had the people, facilities and track record to handle our needs at a competitive price, says Ron Lagac, vice-president and general manager of Club Monaco Cosmetics in Toronto. Were a global company based in Canada. We were looking for a partner that shared our philosophy and would make the necessary commitments to support our activities wherever we needed them.

Club Monaco Cosmetics is completely separate from the renown line of elegant Club Monaco casual wear. Besides being sold in Club Monaco stores, the cosmetic products are also found at beauty counters in major department stores in Canada, the US and about a dozen other countries. Business is booming. From a standing start in 1996, business has already doubled.

And by the end of 1999, Lagac expects it to double again, thanks in large part to products reaching almost 200 stores, up from the original 22.

Cosmeticsand the soon to be launched skin care linepose enormous supply chain challenges. There are basic customs concerns including NAFTA origin regulations, since the cosmetics are produced in Canada from ingredients and packaging sometimes imported from overseas. In addition, beauty products entering the US must also meet Food & Drug Administration (FDA) regulations.

Some accessories such as cotton bags, also face national import quota restrictions. To complicate matters further, retailers have imposed strict vendor compliance rules on suppliers, setting out delivery and packaging standards as well as specifying the use of electronic data interchange (EDI), bar-coding and advanced shipping notices (ASNs) to automate all transactions. Failure to comply results in fines and loss of business.

Club Monaco Cosmetics decided to sign on PBB Global Logistics (PBB) of Fort Erie, ON.

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