EDI and Web-portal Deployment Case Study

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World’s leading manufacturer of video game enhancement products finds IT and product partner in MD Logistics

BACKGROUND Printer Friendly (PDF File)
Datel Design & Development is the world’s leading developer and manufacturer of videogame enhancement products and the only third-party manufacturer of CD, DVD, and peripheral products for all major console platforms, including Sony, Play Station 3, PlayStation 2, Microsoft Xbox 360, Xbox, Nintendo Wii, GameCube, DS/DS Lite, Game Boy Advance and Sony PSP.

A UK company with its North American headquarters located in Clearwater, Florida, Datel supplies major retailers including Wal-Mart, Best Buy, Circuit City, Blockbuster, AFEES, Target, and Game Stop, with product. Its annual order volume is 8,000; its annual unit volume is more than two million.

CHALLENGE
Datel had experienced a poor history with logistics companies and needed a provider that could offer 100% EDI (electronic data interchange), as well as fool-proof distribution and fulfillment services, particularly during the fourth quarter each year.

WHY MD LOGISTICS WAS THE SOLUTION
Once MD Logistics heard about Datel’s needs, they stepped up and said their people could meet those needs. Now, MD Logistics serves as an IT partner to Datel and as Datel’s only North American distribution center and fulfillment house. They provide the following services:

  • Verified receipt of goods
  • Common put-away and inventory management
  • Daily order processing includes pick-and-pack
  • Complete WMS deployment allows adherence to retail compliance; data exchange in 100% via EDI to include 856 ASN and sometimes 810 (invoice) – receives purchase orders and purchase order change notifications direct to retailers
  • Complete reverse logistics and return processing
  •  Occasional rework and repackaging of product
  • Complete TMS deployment and LTL transportation management
  • Complete receipt, inventory, and order visibility via MD Net

RESULTS
“MD Logistics had to create the entire electronics map – they couldn’t ship until they could pull in the P.O.s. They had to learn all the carrier routes. They had to learn the Datel product information. They had to learn the carton markings and requirements of each retailer. They said. ‘we’re not doing it now, but we’ll figure it out.’ And they did – in fewer than 60 days,” explained Chris Duppler, Datel’s director of sales.

“The Datel-MD Logistics relationship is three years old, and we like MD Logistics. They’re our true partner. We call and ask them to jump through hoops. They may ask why, but once we explain, they make it happen.” Duppler continues.

“We experience a large ramp-up annually in the fourth quarter because of the holiday season – it’s probably 40 percent of our annual business. MD Logistics meets the needs. They’re truly our IT and product partner,” Duppler summarizes.

Melissa Overman, project manager for Datal, manages the work with MD Logistics. She remarks that “MD Logistics has handled any load we’ve asked of them…they haven’t missed a beat.”
“We do full order management for Datel,” explains John Sell, director of sales for MD Logistics. “We receive orders from their customers, fulfill those orders, and notify our customer (Datel) on behalf of their customers. We do it all by EDI, and Datel didn’t have to build that IT capability.”
In addition, MD Logistics is doing freight forwarding business for Datel from the United Kingdom and China.

BENEFITS TO THE CLIENT 
Overman says, “MD Logistics has created a streamlined system which causes fewer headaches, less lost inventory, and increased revenue; increased revenue because we incur fewer penalties from retailers, which is very important since large retailers are unforgiving, particularly in the height of the holiday season.”

“MD Logistics has a passion for what they do,” continues Overman. “That makes a difference…Their inventory accuracy has been unbelievable…Without fail, they perform.”

“MD Logistics is painless – for me,” comments Duppler. “There are day-to-day headaches as there are anywhere. However, MD Logistics’ people are fast, fun and friendly, and they turn things around quickly. They are very professional. But they’re a fun group; they make things light.”

Duppler explains further, “MD Logistics’ people are not afraid to ask questions. They’re not afraid to find answers. They help us out, no matter the problem.”

“MD Logistics is our one-stop shop,” Duppler summarizes. “They have the ability to do everything for us. They even brought containers into the country through the mess left by Hurricane Katrina.”
Overman explains, “The task we ask of MD Logistics may be something they’ve never done before, but they’re not afraid to explore a new system and make it work.”

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