Interesting Logistics Article about streamlinging Pentax USA

Docrwm · 05-10-2013, 02:52 PM

Pentax

Client Perspective
“Wildernest Logistics is doing things right. That’s often understated, but it’s key. The cost savings was number one, but it was also really important that I get my product to my customers, and Wildernest Logistics hasn’t missed a beat. We’ve had no disruption at all in our business. They picked it up and got it working immediately. I’m very happy with the way things are. It’s been a win-win situation.” —John K. Hodnett, VP Finance, Pentax Imaging Company.

Excerpt:
In 2010, Wildernest Logistics helped Pentax achieve a dramatic 23% reduction in warehouse fixed operating expenses. Background
For more than 80 years, Pentax Imaging Company has earned its position as an innovative leader and a household name in the production of digital SLR and compact cameras, lenses, flash units, binoculars, scopes and eyepieces.
Challenge
Pentax was running a warehouse and fulfillment facility near their headquarters in Golden, Colorado, but it was too large for their year-round needs, and their landlord was unwilling to negotiate for a smaller space. With the lease coming up for renewal and pressure from the parent company to reduce their fixed operating expenses, they called upon Wildernest Logistics to deliver a third-party logistics (3PL) solution that would keep quality up while gaining much-needed efficiencies.

**Miguel** · 05-10-2013, 03:44 PM

Thanks for posting this.
Hoya is often seen as the bad guys around here, but among the good things they did was bring Pentax corporate operations into the modern world. Outsourcing warehousing logistics management to third parties is a popular practice these days. Sometimes it is very cost effective; other times not so much. Even though the linked story is essentially an advertisement, hopefully the back story is accurate and Pentax can use the savings for developing core products
. . .like wristwatches.

M

**monochrome** · 05-10-2013, 05:07 PM

Outsourcing warehousing is one thing. Only Amazon can successfuly chaos warehouse itself.

Pentax USA outsourced everything. Everything. They were really just a contract coordinator at the end of Hoya.

**interested_observer** · 05-10-2013, 06:46 PM

There are a number of ways to measure efficiencies, and certainly cost is the primary one. Another metric that may be worth noting here, is customer satisfaction. So what does customer satisfaction have to do with warehouse and fulfillment logistics. I am guessing that CRIS and Wildernest Logistics probably meet at the spare depot. A three week wait for "parts from Japan" for a current body, I think is a bit too long. Should be a couple of days at most. The CRIS spare inventory should be integrated so that there are always parts on hand locally, for about 90% of the cases.

05-10-2013, 02:52 PM	#1
Docrwm Veteran Member Join Date: Sep 2010 Location: Somewhere in the Southern US Photos: Gallery \| Albums Posts: 12,285	Interesting Logistics Article about streamlinging Pentax USA Pentax Client Perspective “Wildernest Logistics is doing things right. That’s often understated, but it’s key. The cost savings was number one, but it was also really important that I get my product to my customers, and Wildernest Logistics hasn’t missed a beat. We’ve had no disruption at all in our business. They picked it up and got it working immediately. I’m very happy with the way things are. It’s been a win-win situation.” —John K. Hodnett, VP Finance, Pentax Imaging Company. Excerpt: In 2010, Wildernest Logistics helped Pentax achieve a dramatic 23% reduction in warehouse fixed operating expenses. Background For more than 80 years, Pentax Imaging Company has earned its position as an innovative leader and a household name in the production of digital SLR and compact cameras, lenses, flash units, binoculars, scopes and eyepieces. Challenge Pentax was running a warehouse and fulfillment facility near their headquarters in Golden, Colorado, but it was too large for their year-round needs, and their landlord was unwilling to negotiate for a smaller space. With the lease coming up for renewal and pressure from the parent company to reduce their fixed operating expenses, they called upon Wildernest Logistics to deliver a third-party logistics (3PL) solution that would keep quality up while gaining much-needed efficiencies.

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05-10-2013, 03:44 PM	#2
Miguel Site Supporter Join Date: Sep 2007 Location: Near Seattle Photos: Gallery Posts: 2,743	Thanks for posting this. Hoya is often seen as the bad guys around here, but among the good things they did was bring Pentax corporate operations into the modern world. Outsourcing warehousing logistics management to third parties is a popular practice these days. Sometimes it is very cost effective; other times not so much. Even though the linked story is essentially an advertisement, hopefully the back story is accurate and Pentax can use the savings for developing core products . . .like wristwatches. M

05-10-2013, 05:07 PM	#3
monochrome Loyal Site Supporter Join Date: Mar 2008 Location: Working From Home Photos: Gallery \| Albums Posts: 26,276	Outsourcing warehousing is one thing. Only Amazon can successfuly chaos warehouse itself. Pentax USA outsourced everything. Everything. They were really just a contract coordinator at the end of Hoya.

05-10-2013, 06:46 PM	#4
interested_observer Loyal Site Supporter Join Date: Jun 2009 Location: Tumbleweed, Arizona Photos: Gallery \| Albums Posts: 5,707	There are a number of ways to measure efficiencies, and certainly cost is the primary one. Another metric that may be worth noting here, is customer satisfaction. So what does customer satisfaction have to do with warehouse and fulfillment logistics. I am guessing that CRIS and Wildernest Logistics probably meet at the spare depot. A three week wait for "parts from Japan" for a current body, I think is a bit too long. Should be a couple of days at most. The CRIS spare inventory should be integrated so that there are always parts on hand locally, for about 90% of the cases.