Collaboration is Cost-Effective for Integrated Filing Solutions

Problem: In-house Management Strains Resources

Integrated Filing Solutions, the leading manufacturer of document filing and storage solutions, was formed in 2008 when SEMCO Products, Positive Marketing Associates (PMA), and Midwest Index combined. With a history reaching back 95 years, the new company began with an established internal shipping department. This department was responsible for all inbound shipments of paper, component stock, etc., as well as outbound—which were primarily less than truckload (LTL)—shipments. To customers in places like the Cook County government offices in Chicago, the final delivery is often a box at a time. The Integrated Filing Solutions companies had never worked with a 3PL (third party logistics) provider and instead chose to rely on a single in-house transportation manager to coordinate their supply chain deliveries. However, in-house initiatives were requiring a significant investment of resources.

Several transportation challenges faced Integrated Filing Solutions (IFS) including negotiating better rates, damaged freight and missed deliveries. Without any strategic alliances, managing multiple carriers on a transactional basis demanded a great deal of time to coordinate service and billing. Many phone calls were required to work through the time-consuming claims process. As in-house resources became strained, the decision was made to outsource logistics to the right partner.

Solution: Harness the Power of Partnership

Integrated Filing Solutions sought a 3PL provider who could coordinate multiple carriers, and also become a partner in their success. They turned to Koch Logistics. Since 2010, Koch Logistics has managed all transportation services. Initially guided by extensive process mapping, Koch collaborated with IFS' internal staff to create a program that complemented existing systems. What began as a one market "test" evolved into a company-wide logistics program where all day-to-day logistics duties transferred to Koch. "Koch has essentially taken over our shipping department," explains Nafees Rahman, Plant Manager at Integrated Filing Solutions, "from procurement to final mile delivery."

Koch used the existing IFS carrier base but was able to get both better rates and service. Koch's dedicated account team now provides daily track and trace reports to offer better visibility of all shipments. In addition, a single weekly invoice from Koch with fuel surcharge reporting allows IFS to more easily and accurately bill its customers.

This singularly managed program harnesses the power of a strategic partnership. If an issue arises, instead of making half a dozen calls to carriers, "we now place one call to Koch to make things right," says Rahman. With its logistics program expertly managed by Koch, IFS was able to re-deploy its staff to another area.

Results: Better Service, Less Cost

Partnering with Koch Logistics to manage the supply chain delivered dramatic benefits to IFS by better managing costs and enhancing customer service. "We have seen huge freight savings with Koch Logistics as they leveraged their breadth and depth of experience for our benefit," Rahman explains. "Last year's sales were up 20% and freight costs are such a big portion of that. Even so, we're seeing savings."

Rahman also praised Koch's technology platform that offers tools to manage their business more efficiently. Tailored for their specific needs, Koch offers an online coding system that allows each IFS customer service representative access to generate on-demand freight estimates. "Response time from Koch is often instantaneous," commented Rahman. "We don't have to wait on the phone for an answer, which makes our jobs easier and creates bottom-line savings across the company." Koch Logistics brought scalable resources to Integrated Filing Solutions that would have been very difficult to maintain in-house. And looking to the future, Rahman explains, "Working with Koch Logistics is phenomenal. We are partners now."