Consumer packaged goods brand, Turtle Wax, has worked with a leading 3PL provider to reduce retailer chargebacks by more than 20% with a omni-channel fulfillment solution. Find out how Turtle Wax and LeSaint bring sparkle and luster to the supply chain, delivering to top automotive and big box retailers across the logistics network.
More than 75 years ago, Ben Hirsch invented liquid auto polish in the family bathtub. Today, Chicago-based Turtle Wax is the world leader in car care and continues to produce innovative product lines to meet the ever-changing needs of car enthusiasts and the automotive industry.
Like many of the greatest consumer brands, Turtle Wax® works hard to provide the most groundbreaking products on the market. Their supply chain, however, was struggling to keep pace.
Turtle Wax was faced with some significant changes in their supply chain. First, the Turtle Wax standard palette size had historically been 60 inches high; a size too high for the new shelving requirements in some of the major automotive retail stores. The implications of changing this had a cascading impact to warehousing, packaging and fulfillment, requiring new solutions and capabilities. Further, the increased need to cross-dock shipments required specialized placarding on pallets. Finally, customers had started asking for non-standard quantities of product in their orders; a common but challenging problem for omni-channel fulfillment.
Turtle Wax’s existing logistics providers were struggling to adjust to these new dynamics in fulfillment, and as a result, costs were going up and orders were not being filled correctly or on-time.
A Generous Layer of Know-How for a More Flexible Supply Chain
In 2009, LeSaint began providing end-to-end supply chain management, comprehensive enough to cover all aspects of Turtle Wax’s omni-fulfillment – including managing the inbound raw materials from manufacturers, taking the manufactured goods to the distribution center, and distributing the finished Turtle Wax goods worldwide.
LeSaint’s solutions suite enables a better supply chain for Turtle Wax. LeSaint provides inbound freight management to Turtle Wax manufacturing facilities. LeSaint has the experience needed to work with chemicals and hazardous materials, a true differentiator compared to many logistics providers. Next is the transfer of finished product to the LeSaint distribution center, and finally, outbound delivery to automotive and big box retailers of all sizes.
Across the entire supply chain, LeSaint’s services are flexible enough to meet the needs of Turtle Wax’s business. For example, Turtle Wax can now meet the 40-inch pallet height demands of automotive retail stores.
For the big box stores, LeSaint continually stays below the set claims allowance for returned goods. In fact, there has been a total reduction in retailer chargebacks of 22%.
“Turtle Wax had a lot of the same challenges that many of our customers face—the delivery demands of the typical retail store customer dictate flexibility in how we ship product,” explains Dino Moler, Executive Vice President of Client Solutions for LeSaint. “What makes LeSaint’s approach different, is that we don’t try to make our customers fit into a ‘one-size-fits-all’ service for warehousing. We realize that retailer requirements are unique, and therefore, the way we fulfill product has to be able to match.”
The Finishing Touch: Full Transparency and Detailed Visibility
The relationship between Turtle Wax and LeSaint is an open book cost-plus agreement – an agreement where everything is transparent to both parties.
Through better-quality reporting, LeSaint monitors performance primarily using two, extensive reports on Key Performance Indicators (KPI’s). The first report is customized for Turtle Wax’s largest customer, who is the world’s largest retailer. The second report covers critical information for all of Turtle Wax’s other customers.
The reports provide visibility to not only measurements, but also to trends that are occurring in the network. Some of the reporting measures are:
- Cost per dedicated load
- On-time delivery – all & customer-specific
- Operational OSHA recordables
- Variable cost per case
- Chargeback dollars approved
- Absolute case variance percentage
The KPI reporting is only successful when it occurs alongside daily monitoring of the network’s performance. This allows LeSaint to respond to issues that arise and ultimately control costs and ensure better customer satisfaction.
With this type of attention to detail, LeSaint and Turtle Wax have enjoyed a long-term partnership focused on the common goal of customer satisfaction.