Challenge

A major supplier of chemicals and raw materials to the commercial printing industry consolidated three older manufacturing facilities into a single, modern center of excellence in the Midwest to streamline its operations. One of the shuttered plants, located in Southern Texas, had also served as a warehouse supplying customers in the surrounding states. Establishing and operating a standalone regional warehouse was not a viable option for this company. Instead, the company decided to outsource the function.

Because this company’s product line included hazardous materials, the chosen firm would have to meet a high standard of qualifications. “We needed a company that had the experience to manage hazardous chemicals and could ship orders quickly in an error-free manner,” said the company’s Director of Logistics.

Solution

A large concentration of customers was around Dallas, so the company decided to locate its new warehouse there. It evaluated nearly a dozen warehousing firms. After carefully weighing the capabilities of each, this company chose Rinchem.

Rinchem, with over 30 years of experience, easily met all of the basic qualifications and regulatory requirements. “They were able to provide the full spectrum of services for a chemical facility,” said the company’s Director of Logistics. Rinchem also offered much more. Rinchem’s web-based inventory management program, Chem-Star®, could allow this company and its customers to track chemical inventories in real-time and run multiple reports from their own desktops.

Another attractive feature was Rinchem’s simplified pricing structure, which was based on the weight of products received into the warehouse. Other warehouse firms charged complicated transaction-based fees.

“It was a huge differentiator for us,” Said the company’s Director of Logistics. “Rinchem’s single-price approach is extremely easy to work with.”

Rinchem also stood out as a true partner with a can-do attitude. “They were willing to streamline the negotiation and contract process and make it easy to do business with each other,” recalled the company’s director of logistics. And Rinchem was willing to address the company’s most pressing need—a fast ramp-up as the date when the facility had to be available drew near. “Rinchem exceeded my expectations,” said the Director of Logistics. “The whole process took less than a month including contract signing, loading the database with more than 250 items, testing, and shipping product to the warehouse. They bent over backwards to get it done. The MIS person from Rinchem even worked over a weekend.”

Executives at this company see the relationship between itself and Rinchem expanding in the future. With a new corporate Enterprise Resource Planning system in the implementation stage, they expect to take full advantage of Chem-Star, linking the inventory management program with the ERP system. The Director of Logistics is also considering the opportunity to leverage Rinchem’s transportation services. Rinchem is a bonded carrier, transporting millions of pounds of chemicals and hazardous materials each year. Its specialized fleet of tractors and trailers provide local, 24-hour just-in-time delivery and over-the-road transportation services. “When we first looked at Rinchem, their ability to handle some of our local shipping was another differentiator for us.”

Another plus for the company was Rinchem’s national presence, with 28 warehouse facilities across the United States and Mexico. “Rinchem wasn’t just a local company,” said the company’s Director of Logistics. “We would be open to using Rinchem in other international locations.” And Rinchem’s standardized processes allow it to expand customer presence to additional locations in a very easy and rapid manner.

Benefits

Rinchem was not only the most capable warehouse provider the company in question considered, but also the most cost-effective. “We’ve probably saved 15 percent over the nearest competitive quote,” said the company’s Director of Logistics, who also sees a potential opportunity for cost savings by shifting some local deliveries to the Rinchem fleet. In addition, the contract enables this company to control their costs through storage rates that provide incentives for increasing inventory turns. “They took a very novel approach, which provides me with an incentive to do a better job of inventory management,” said the company’s Director of Logistics.

Rinchem’s simplified pricing model also helps this company reduce administrative costs. Once Chem-Star is interfaced into the corporate ERP system, the company will be able to achieve even greater efficiencies. Rinchem has earned the respect of this major supplier to the commercial printing industry, handling its Dallas warehousing needs safely and efficiently with the highest level of professionalism. “I view our association with Rinchem as a true relationship rather than just a purchase opportunity,” said the company’s Director of Logistics, who points to the effortless flow of communication between the two organizations. “Whether it’s our Account Manager, the Facility Manager, or the person on the dock, if we want to discuss something, they are on the phone immediately.”

The Director of Logistics sums up his experience with Rinchem this way. “They assembled a knowledgeable team that has delivered beyond expectation, and at a fair price. The Rinchem team came through big time for us.”