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Case Study: Logistix Worldwide

Logistix Worldwide is a leading third party logistics (3PL) and distribution company, serving manufacturers in a variety of industries including lighting, office products and publishing. It is strategically headquartered in Tennessee, a two day delivery point of 80% of the US population, with additional facilities in Los Angeles, Rancho Dominguez and Oakland, California, as well as Edison, New Jersey. With the latest technology, industry expertise, and a growing customer base, Logistix manages its customers' supply chain needs from point of manufacture through to final customer delivery. As many of its customers' operations are based entirely overseas, Logistix is often the sole U.S. presence for these organizations. Logistix manages all receiving and shipping, responds to all customer service inquiries, and provides day-to-day inventory management on behalf of their customers. With a lean staff to keep costs competitive, Logistix leverages the latest in technology to streamline its operations without impacting its relationship with their clients and their trading partners. Providing 24/7 Visibility to a Global Customer Base Logistix sought to provide its customers with near real-time visibility to the shipping status of their orders and inventory levels. It faced a choice of increasing it customer support staff to handle inbound customer calls at any time of day, or implementing a new software solution that would provide this information to customers securely over the Internet. Either choice would need to provide its global customers with timely information regarding Logistix' operations. After carefully considering their customers' needs, a thorough evaluation of available software options, and related costs, Logistix selected 3PL Central's on-demand warehouse management solution (WMS), 3PL Warehouse ManagerTM, in 2004 in lieu of expanding their internal resources. With 3PL Central, they are able reap the rewards of a robust WMS solution to manage their distribution activities and, just as importantly, enable its customers to track their shipments and inventory with access to data from a real-time, 24/7 WMS system. 3PL Warehouse Manager is a web-based solution with no software to install, maintain, or update, keeping IT overhead to a minimum and providing global access to Logistix' data from any PC connected to the Internet. "After selecting 3PL Central, we chose to implement 3PL Warehouse Manager immediately and run parallel systems for six months to make the transition easier on Logistix and our customers," stated Erik Hinson, Managing Director at Logistix Worldwide. "We found that our staff was spending hours entering data into the old system, while 3PL Warehouse Manager could input our information in real-time. Within just six weeks, we decided to turn off our older system and use 3PL Warehouse Manager exclusively. We have the highest confidence in the 3PL Central solution as the right technology for Logistix Worldwide and our customers." No matter their location or time zone, Logistix' customers can access reports online, allowing them to view real-time inventory status, shipment status, parcel tracking information, and more. In addition, they are automatically notified of via email of key warehouse events (e.g., receipts, shipments, etc.). Offering EDI Without Becoming Experts Today's global supply chains are relying on visibility and communication, namely achieved through Electronic Data Interchange (EDI). As business grew for Logistix, the need to support retailer EDI became critical to support existing and new customers. "EDI is a requirement to participate in most supply chains, and one that often makes manufacturers uneasy about its costs and their responsibilities," continued Hinson. "At Logistix, we educate our clients on how EDI can help them to grow their business by securing new retail customers or growing the volumes carried by current customers. Retailers usually show preference to their EDI-capable vendors. We put our customers' EDI concerns to rest as EDI can be easily integrated into our cost-effective services." When looking to add EDI to its capabilities a few years ago, Logistix was again faced with adding IT staff and systems, or leveraging EDI capabilities and expertise available from a Software-as-a-Service (SaaS) or

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on-demand service. After speaking with some of their partners and customers, including existing 3PL WMS provider 3PL Central, Logistix selected SPS Commerce's web-based EDI service, SPSCommerce.net. With a pre-wired and proven integration with 3PL Central's WMS system, SPSCommerce.net was processing Logistix' EDI in a very short period of time. "SPS' service had proven EDI connections with many of our customers' trading partners including Grainger Industrial Supply, Office Depot, Staples, and Wal-Mart, as well as more than 1,300 other retailers, grocers and distributors future customers might request," commented Hinson. "In addition, they had a reputation for working well with their customers and could scale to meet our growing needs. With SPS' expertise and robust service, we are confident of their EDI service as glad to integrate it into offerings." Logistix' use of SPS' services scale to enable them to service new customers and account for the seasonality of some of their customers' business. Each month they are processing more than a thousand EDI transactions with plans to grow this volume as their business, and their clients' business grow. Delivering a Competitive Advantage By offering online visibility and comprehensive EDI, Logistix is able to deliver more to its customers while keeping its costs low and customer satisfaction high. It has also attracted new business. "3PL Central and SPS Commerce have given us a competitive advantage and without the combined solution we would not have been able to grow our business so quickly," explained Hinson. "We have more to offer our customers and can service large and small accounts alike with our knowledgeable staff. Due to our WMS and EDI capabilities, Logistix has signed on new accounts that desired these services as part of their 3PL relationship."

About 3PL Central 3PL Central (www.3plcentral.com) is a new breed of 3PL software provider, offering ondemand supply chain software focused on the needs of 3PLs, public and thirdparty warehouses. 3PL Central's 3PL Warehouse Manager, the first ondemand Warehouse Management System (WMS) built to provide public warehouse operations enterpriseclass WMS functionality. Offered via an on demand, or Software as a Service (SaaS) model, enabling 3PLs and public warehouses access to cuttingedge software at a low monthly fee and significantly reducing the total cost of ownership of supply chain execution software from the traditional "buy, upgrade and maintain" software cycle. 3PL Central is headquartered in Manhattan Beach, California. For additional information, please contact 3PL Central at 18883752368 or visit www.3plcentral.com. About SPS Commerce SPS Commerce is a leading provider of ondemand supply chain management solutions, providing integration, collaboration, connectivity, visibility and data analytics to thousands of customers worldwide. We deliver our solutions over the Internet using a SoftwareasaService model to improve the way suppliers, retailers, distributors and other customers manage and fulfill orders. Our SPSCommerce.net platform features prebuilt integrations used by current and new customers alike, spanning 2,700 order management models across 1,300 retailers, grocers and distributors, as well as integrations to over 100 accounting, warehouse management, enterprise resource planning, and packing and shipping applications. More than 35,000 customers across more than 40 countries have used SPSCommerce.net, making it one of the largest trading partner integration centers. SPS Commerce has 36 consecutive quarters of increased revenues and is headquartered in Minneapolis. For additional information, please contact SPS Commerce at 8662458100 or visit www.spscommerce.com.

3PL Central, 3PL Warehouse Manager, Billing Wizard and For 3PLs on the Grow are trademarks of 3PL Central, Inc. SPS Commerce is a registered trademark of SPS Commerce, Inc. SPSCommerce.net and the SPS Commerce logo are the property of SPS Commerce, Inc. All other names and trademarks are the property of their respective holders.

Case Study: Logistix Worldwide 333 South Seventh Street, Suite 1000 | Minneapolis, MN 55402 | P: 612-435-9400 F: 612-435-9401 | www.spscommerce.com 2

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Microsoft Word - Logistix WW Case Study - SPS 3PL Central - FINAL.docx