Kingsdown Optimizes Supply Chain Logistics
Mebane, N.C.-based Kingsdown has been providing its customers with premium sleep systems for
more than 100 years. Kingsdown is committed to providing the latest technology and products that will deliver a good night's sleep.
One of the largest independent sleep-system manufacturers in the United States, Kingsdown operates manufacturing facilities in Virginia, Tennessee, Florida and Oklahoma, in addition to its North Carolina headquarters. With yearly revenues of $180 million, it delivers premium sleep systems to hundreds of retailers throughout the United States and internationally.
Challenge
In 1995, Kingsdown outsourced its domestic delivery fleet to a third-party logistics provider. However, it still lacked the ability to accurately locate its packages en route to their destinations. In order to continue growing its business, Kingsdown looked for ways to streamline its delivery fleet; increase efficiency; decrease delivery errors and associated return costs; and maintain the level of service its customers had come to expect. Kingsdown ultimately made the switch to UPS, capitalizing on its long tradition of professional service and innovative technology.
"UPS has all of the proper driving training and can provide the necessary equipment and technology to get the job done," notes Kingsdown's Joe Schmoeller, senior vice president for manufacturing. "It's a very professional fleet."
Dedicated Contract Carriage Solution
UPS provided Kingsdown with a dedicated contract carriage (DCC) solution supported by advanced transportation technology that increased visibility and data access throughout the company's supply chain. Through the solution, UPS provided the company with the drivers and tractors necessary to move its inventory in Kingsdown-owned trailers.
On-the-Spot Technology
A key sweet spot for Kingsdown was the increased supply chain visibility it gained through the new technology, which provides the company with visibility throughout every link of the supply chain.
"The technology from UPS provides benchmarks all the way across our supply chain," says Schmoeller. "It has dramatically improved our data access and ability to quickly react to issues along the supply chain."
Through sophisticated handheld devices with global positioning system (GPS) software and scanning capabilities, Kingsdown is able to monitor the entire trip plan for its goods. Each product is tagged and scanned when loaded onto trailers, and again when delivered. The data is simultaneously uploaded into the dispatch management system to provide Kingsdown with valuable product verification data and delivery confirmation back to Kingsdown.
DCC Flexibility
A key benefit of the DCC solution is that it has the flexibility to adjust along to ebbs and flows of
Kingsdown's business. President's Day, Memorial Day, Fourth of July and Labor Day are busy times for Kingsdown, and UPS supplements its dedicated fleet with additional drivers and equipment during those periods to meet the increased demand. The solution can also be scaled back to meet consumer demand during non-peak times.
Flexibility also played a large role in a successful product launch in March 2009. When a customer in the northeast United States requested that the product be rolled out directly to approximately 600 of its locations, Kingsdown turned to UPS.
Most of the stores could not accommodate 53-foot trailers, so UPS utilized tandem "pups" to make the deliveries. UPS brought them to a Kingsdown distribution center for loading, and then staged them at freight yards near the customer's stores. From there, tractors took the individual pups to the customer's stores for distribution.
"In a four-week period, we were able to roll out to about 400 stores. UPS really stepped in and provided a creative and cost-effective solution to make that happen," says Schmoeller.
Route Planning and Logistics Expertise
While trucks are on the road, drivers have access via handheld computers to directions for each stop. UPS creates an automated trip plan built for efficiency, and operations supervisors communicate with the fleet using the computer's text messaging feature to proactively respond to unexpected delays.
Additionally, the automated route planner can relay when it is efficient to pick up raw materials for Kingsdown on return trips, or if empty trailers can be filled with third-party freight.
Results
The new solution has helped Kingsdown maximize fleet efficiency and lower overall transportation costs. Delivery errors virtually disappeared, and Kingsdown has seen marked improvement in customer service and key performance metrics.
Before, supply chain visibility was limited once the trucks left the docks. Now, Kingsdown has the real-time visibility to streamline scheduling, routing and deliveries, which has helped shorten its billing cycle.
Working with UPS also allowed Kingsdown to focus on its core competency, leaving logistics to the experts.
"Because of its size and versatility, UPS has helped us effectively manage our fleet and provide our customers with the precise and professional service that we have become known for," closes Schmoeller.
more than 100 years. Kingsdown is committed to providing the latest technology and products that will deliver a good night's sleep.One of the largest independent sleep-system manufacturers in the United States, Kingsdown operates manufacturing facilities in Virginia, Tennessee, Florida and Oklahoma, in addition to its North Carolina headquarters. With yearly revenues of $180 million, it delivers premium sleep systems to hundreds of retailers throughout the United States and internationally.
Challenge
In 1995, Kingsdown outsourced its domestic delivery fleet to a third-party logistics provider. However, it still lacked the ability to accurately locate its packages en route to their destinations. In order to continue growing its business, Kingsdown looked for ways to streamline its delivery fleet; increase efficiency; decrease delivery errors and associated return costs; and maintain the level of service its customers had come to expect. Kingsdown ultimately made the switch to UPS, capitalizing on its long tradition of professional service and innovative technology.
"UPS has all of the proper driving training and can provide the necessary equipment and technology to get the job done," notes Kingsdown's Joe Schmoeller, senior vice president for manufacturing. "It's a very professional fleet."
Dedicated Contract Carriage Solution
UPS provided Kingsdown with a dedicated contract carriage (DCC) solution supported by advanced transportation technology that increased visibility and data access throughout the company's supply chain. Through the solution, UPS provided the company with the drivers and tractors necessary to move its inventory in Kingsdown-owned trailers.
On-the-Spot Technology
A key sweet spot for Kingsdown was the increased supply chain visibility it gained through the new technology, which provides the company with visibility throughout every link of the supply chain.
"The technology from UPS provides benchmarks all the way across our supply chain," says Schmoeller. "It has dramatically improved our data access and ability to quickly react to issues along the supply chain."
Through sophisticated handheld devices with global positioning system (GPS) software and scanning capabilities, Kingsdown is able to monitor the entire trip plan for its goods. Each product is tagged and scanned when loaded onto trailers, and again when delivered. The data is simultaneously uploaded into the dispatch management system to provide Kingsdown with valuable product verification data and delivery confirmation back to Kingsdown.
DCC Flexibility
A key benefit of the DCC solution is that it has the flexibility to adjust along to ebbs and flows of
Kingsdown's business. President's Day, Memorial Day, Fourth of July and Labor Day are busy times for Kingsdown, and UPS supplements its dedicated fleet with additional drivers and equipment during those periods to meet the increased demand. The solution can also be scaled back to meet consumer demand during non-peak times.Flexibility also played a large role in a successful product launch in March 2009. When a customer in the northeast United States requested that the product be rolled out directly to approximately 600 of its locations, Kingsdown turned to UPS.
Most of the stores could not accommodate 53-foot trailers, so UPS utilized tandem "pups" to make the deliveries. UPS brought them to a Kingsdown distribution center for loading, and then staged them at freight yards near the customer's stores. From there, tractors took the individual pups to the customer's stores for distribution.
"In a four-week period, we were able to roll out to about 400 stores. UPS really stepped in and provided a creative and cost-effective solution to make that happen," says Schmoeller.
Route Planning and Logistics Expertise
While trucks are on the road, drivers have access via handheld computers to directions for each stop. UPS creates an automated trip plan built for efficiency, and operations supervisors communicate with the fleet using the computer's text messaging feature to proactively respond to unexpected delays.
Additionally, the automated route planner can relay when it is efficient to pick up raw materials for Kingsdown on return trips, or if empty trailers can be filled with third-party freight.
Results
The new solution has helped Kingsdown maximize fleet efficiency and lower overall transportation costs. Delivery errors virtually disappeared, and Kingsdown has seen marked improvement in customer service and key performance metrics.
Before, supply chain visibility was limited once the trucks left the docks. Now, Kingsdown has the real-time visibility to streamline scheduling, routing and deliveries, which has helped shorten its billing cycle.
Working with UPS also allowed Kingsdown to focus on its core competency, leaving logistics to the experts.
"Because of its size and versatility, UPS has helped us effectively manage our fleet and provide our customers with the precise and professional service that we have become known for," closes Schmoeller.