Bailey utilises third party logistics to expands across America

By utilising third-party logistics provider (3PL) Reno Distribution, Bailey International LLC will be able to provide cost-savings to over 4,400 current Western customers and over 25,000 potential customers.  

Bailey’s Chief Financial Officer (CFO), Steve Boyack stated:

“As a business, you are always looking for ways to grow both organically and acquisitively. I think that using a 3PL is a hybrid of both. We are not acquiring, but we are able to better support our current customers and gain a whole new customer footprint simply because we have a new logistics provider on the West Coast.”

Bailey’s Chief Executive Officer (CEO), Kevin Bailey commented how Reno provides a strategic, logistical advantage for both Bailey and its customers by offering substantial time-savings:

“If a customer calls an order in by 3pm (PST), we will ship that order the same day. With the proximity of the Reno location to the West Coast, most every customer on the West Coast will receive that order through standard shipping methods in just one or two business days, which is just a phenomenal improvement from currently shipping from Knoxville to the West Coast.”

Time-savings can reduce both manufacturing lead times and down-time, which in turn improves the value proposition of Bailey’s products. Substantial cost-savings will be also benefit from Reno fulfilment.

Bailey continued:

“Customers in the Western 11 States can save as much as 50 percent in freight cost by having their orders shipped from Reno versus Knoxville. Since freight comes right off your Profit & Loss, if our customers now save $500 in freight costs, then they just improved their profitability by $500.”

Over the next several weeks, Bailey will send more than 50,000 products to the Reno location, including all of the most popular cylinders, valves, pumps, motors, power units, bearings and fluid conditioning products.

More than 1,500 SKUs will be available for purchase from the Reno location, with the West Coast set-up due to begin shipping from 1 July, 2013 – Bailey will also be extending its service hours to 6pm (PST) from 24 June, 2013.