July 24, 2012
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A business boom creates new logistics challenges
While most companies were focused on surviving the recession, Florida-based Vology Data Systems was experiencing a major business boom. From October 2009 through March 2010, the company experienced a 40 percent surge in business.
As an independent technology solutions company, Vology delivers top quality new and pre-owned networking and telecommunications solutions at a fraction of new list cost. When the global recession pushed companies to cut costs, more businesses turned to Vology for cost-effective technology products.
"We want our customers to see us as a reliable, cost-effective solution and an alternative to buying new," said Joy Perkins, Director of Operations at Vology. "We strive to provide a better warranty and a better customer experience than our competitors."
While Vology's sudden growth was a boom for the company, it also created some logistical challenges that had to be addressed to ensure orders from around the world were filled quickly and customers were satisfied. Vology's international orders were growing rapidly, and a contract with the U.S. military required regular shipments to distant locations like Afghanistan.
"Our website was helping us connect with markets across the globe," said Perkins. "We even expanded our international sales team to prepare for more global growth. Next we needed a reliable shipping partner that could keep up with our fast-paced business."
With hundreds of international orders a week, it was vital that the shipping process was fast and seamless. Vology needed a transportation provider that could go beyond shipping to handle other issues like customs clearance and brokerage for all of its international shipments.
UPS and Vology team up for global growth
Vology called on UPS to manage its international supply chain. From shipping to customs brokerage to returns, UPS keeps Vology's global supply chain moving.
"The process is very seamless for us," said Perkins. "UPS brokers everything. To us, the only difference between a domestic package and an international one is that we have to add a commercial invoice."
Vology uses UPS Paperless Invoice® to manage complicated customs paperwork electronically, rather than manually completing paper invoice forms in triplicate. The service helps Vology save time and trees, while reducing paperwork errors – the number one reason for delays at Customs.
Tracking is a top priority for Vology and UPS Quantum View® provides complete visibility into its global supply chain. Quantum View's tracking feature helps keep inventory moving and accelerates the billing process because Vology can bill for an item as soon as it has a tracking number.
"We receive enormous amounts of inventory and we have to turn it around quickly," said Perkins. "That's why tracking is so important. Sales people can sell things that are en route, and the receiving team can project what's coming in and plan staff accordingly."
Tracking also helps Vology keeps customers informed of their shipment status and proactively address issues.
"It's such a valuable tool to be able to call our customer before our customer calls us," said Perkins.
Vology's warehouse gets in shipshape
Vology also turned to UPS to provide advice on its warehouse redesign. In only two and a half months, UPS worked with Vology to redesign its facility and streamline its operation. The result was a substantially reduced footpath, a more efficient pick and pack process and more space for storing inventory. Overall, the changes increased the facility's capacity by about 70 percent.
"UPS reduced our production area from 20,000 square feet to 6,000 square feet, so we could save the rest of the space for pure storage," said Perkins.
Additionally, Vology invested in the building's aesthetics to create a cleaner, more efficient production area that reflects its dedication to quality and the pursuit of being a world-class operation.
When Vology experienced its major surge in business from October to March, it did not need to build a new warehouse or hire new employees because the more efficient layout was able to accommodate the growth. Now Vology can nearly double its current capacity before growing out of its facility.
What's more, inventory flows efficiently from one area to another. Approximately 40 percent of Vology's inbound volume arrives, gets tested and is sent out to a customer on the same day, so the process must be quick and seamless. Then, to meet the tight deadlines, approximately 35 to 40 percent of Vology's shipments are sent via UPS Express® to their final destinations.
"We're all about urgency. And our shipments are on time more than 99 percent of the time," said Perkins.
Even with the exceptional technology and efficiency solutions, Perkins is most impressed with her senior account manager Ken Graziano.
"Ken is the most attentive account manager that I've ever had the pleasure of working with," said Perkins. "It's refreshing and good to know that he's an extension of our company. We have 110 people here and almost every one of them knows Ken by name."
The future looks bright
With a newly-renovated warehouse and supply chain, Vology is ready for continued global growth. The company plans to open up new markets and expand its presence around the world. With a network serving more than 200 countries and territories, UPS is poised and ready to help Vology continue growing wherever business takes them.
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