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Case Studies

Case studies A
An American firm has decided to expand their network into the Canadian market. Initially, all sales orders are processed and shipped from a US distribution center, but as sales increase significantly this option in no longer cost effective. The transportation costs, duties, and transit time prevent the company from attaining a competitive advantage with companies that are already established in Canada.

Solution
By using Instorage as their Canadian third party logistics provider, they transferred their stock to our Brampton, Ontario location. Having inventory levels at our location facilitated quick order processing turn around, as well as faster transit times and lower transport costs. By utilizing Instorage’s vast network of preferred transportation carriers, the customer was able to take advantage of the cost savings that Instorage receives through their high shipping volumes. The American firm added value to their supply chain while reducing costs and became a market leader in their industry.


Case Study 2
Due to the downturn in the economy a Toronto manufacturing company downsizes and decides to implement a just-in-time inventory practice for parts required for their manufacturing process. A sudden increase in demand or a delay at the suppliers manufacturing facility results in a lack of parts needed to sustain their assembly line. Parts are often expedited from Asia and flown to avoid delays in production, the costs to expedite parts consistently are astronomical and a feasible solution must be implemented.

Solution
Since their main focus was manufacturing, the company had minimal space to store the raw materials needed to maintain their manufacturing facility. By utilizing Instorage Distribution’s 3rd party warehouse/logistics services, they began storing a safety stock inventory. By maintaining accurate inventory levels and ensuring FIFO a supply of parts was available when needed; ensuring that the production line was never in imminent danger of shutting down. The customer was also able to check their inventory levels online, ensuring that they were also aware of inventory levels on hand at any given time. Outsourcing their storage needs to Instorage eliminated the need for the costly expedition of goods, and eliminated the stress and cost associated with expediting shipments.

Instorage Distribution

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