Meridian IQ enables smaller players to compete with big box retailers.

Independent Stationers Inc (IS Group) is a co-op buying group of independent office suppliers and furniture dealers. The group includes 450 member-dealers with three distribution centers and over 1,100 locations. IS Group leverages the collective buying power of all its member-dealers enabling them to source products at the same cost as big box retailers.

Business need

Since 1977, IS Group has been offering its member-dealers negotiated rates with suppliers. Members easily competed on service they brought to their customers, but struggled to keep prices close to those of the large big box office supply stores. After searching for new ways to retain and grow their businesses, the decision was made in 2004 to drive additional costs out of the members’ supply chains by offering transportation and distribution services.

IS Group sought out Meridian IQ to develop a solution that would ultimately make a positive impact on the overall cost of their products. 

Solution

Recognizing the specific needs of IS Group, Meridian IQ built a customized solution for the organization.  PowerTMS™, the web-based transportation management system of Meridian IQ, is an integral part of the solution – automating key logistics management processes while improving visibility and data flow among suppliers, distribution centers, and IS Group dealers.

Key functionality includes:

-         Order management – Orders are electronically received via EDI or the web.

-         Shipment Planning and Optimization – PowerTMS plans and consolidates the shipments according to the business rules IS Group has defined for each of its distribution centers.

-         Order Fulfillment – All orders are picked at the distribution centers and released for next day pickup.

-         Carrier Management – Meridian IQ manages the carrier relationships including tracking and tracing via EDI with all carriers, and maintains that carrier service standards are being met.

-         Financial Reconciliation – Meridian IQ audits and pays all freight bills and sends IS Group one consolidated weekly statement.

Results

This combination of Meridian IQ services has created a solution in which member-dealers have been able to decrease transit times, while reducing overall logistics costs – resulting in inventory turns increasing by over 30% and profit margins increasing over 3%.

IS Group delivers orders within four days to 97% of their dealers - 82% receive the orders in less than three days. 

The visibility Meridian IQ provides enables IS Group to consolidate small LTL shipments, decreasing the number of shipments by nearly 50% even though their business overall had increased significantly.  In addition, claims have also considerably dropped for IS Group.

Meridian IQ manages the relationships with transportation providers, ensures service standards are met and any service issues, such as late pick-ups or damages, are handled and resolved by Meridian IQ personnel – freeing up IS Group to focus on their business and members.

IS Group and Meridian IQ continue to work together to drive more efficiency in to the supply chain, ultimately enabling their member-dealers to compete on a more level playing field with big box retailers.

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