Founded in 1976, RHD Tire is well-known and established in every area of operations in Michigan. They distribute and broker familiar brands of tires. RHD Tire was running on separate legacy financials and warehouse management systems (WMS) that were not integrated and required external help to manage.
This led to the initiation of a partnership with Blue Horseshoe, a partner that could understand their complex supply chain and adapt that to a one-platform environment, while also pinpointing process efficiencies and guiding the overall supply chain strategy.
RHD’s legacy system used a combination of two platforms: on-premise, custom-built AS400-style ERP, along with a separate, customized WMS. This combination of customized platforms gave RHD little to no insight and zero control over their system.
To complicate matters, RHD Tire’s inbound and outbound processes were complex and inefficient. Inventory was a mess, with items going missing every day. And the financials were in no better state, with information in multiple different locations.
Because of these obstacles, they resorted to using a third party to complete the simplest tasks, like onboarding a customer. Their inability to scale their business during times of growth was marred by long lead times, siloed data, and lack of availability and transparency.
Blue Horseshoe suggested using a combination of NetSuite and Dell Boomi, which would give RHD one central system that can handle both their internal system and partner network integrations. Over the course of this implementation, legacy financials were migrated onto NetSuite OneWorld and NetSuite WMS.
Blue Horseshoe enhanced RHD Tire’s inbound and outbound processes by updating business processes to increase supply chain efficiencies. This efficiency upgrade included:
- NetSuite reporting included dynamic inventory, resulting in a reduction in missing inventory items.
- Reduction in labor, which offsets monthly expenses related to this implementation and ongoing service (saving over $75,000 a month).
- Extended WMS Functionality, which means more insights, like pick by load or pick by truck.
- Created a Boomi Flow workflow application that captures signature on delivery and automatically integrates with the NetSuite Order Form.
Improved division of labor due to systemic workflow improvements has allowed us to separate tasks by specialty. We've seen exponential efficiencies in our warehouse and inventory, like:
- Consolidated routes, company-wide, by over 10%(one location saw the number of routes reduced by 25%).
- Reduced costs in driver labor and vehicle expenses.
"Blue Horseshoe acted as a strategic partner in guiding the overall supply chain strategy and efficiencies from the beginning. We were blown away by their team's efforts in safely taking the RHD team live through in-person support, technically and functionally, in their warehouses during the project to implement these warehouse management systems" - Chris Pierce, Cheif Financial Officer at RHD Tire
Exponential Cost-Savings on 100% Scalable Platforms
Despite COVID-19 delays, the company was able to continue operations. The Blue Horseshoe team safely guided the RHD Tire team through in-person training and support both technically and functionally in their warehouses.
Although lead times in opening new warehouse locations were significantly reduced, Blue Horseshoe’s migration and implementation aid reduced this process from two months to less than 20 hours.
The solution played a key role in updating RHD Tire’s business processes through its configuration of NetSuite to pick inventory by truck and route, creating efficiency in the warehouse picking processes for truck drivers, while also freeing truck drivers from assisting in the picking process. This configuration also resulted in the reduction of missing inventory items, which was once a daily occurrence for RHD Tire.
"Blue Horseshoe acted as a strategic partner in guiding the overall supply chain strategy and efficiencies from the beginning. We were blown away by their team's efforts in safely taking the RHD team live through in-person support, technically and functionally, in their warehouses during the project to implement these warehouse management systems"