Batteries Plus' Supply Chain Keeps Going and Going

Batteries Plus had an inefficient distribution model. Each franchise location would purchase inventory directly from manufacturers and suppliers, requiring multiple vendors, multiple weekly purchase orders, and inherently higher acquisition costs with larger per-order vendor minimums.

Batteries Plus implemented a wholly owned subsidiary, Ascent Battery Supply, to become the primary supplier of battery product to the Batteries Plus franchise system. Batteries Plus utilized Olson Logistics, a 3PL (third party logistics provider), for the actual warehouse functions and implemented an internally developed sales order processing system. This enabled automated electronic sweeping of POS data to Ascent (every 5 minutes). The POS system is integrated with inventory and customer credit data, so updates are electronically delivered to the 3PL (typically within 10 minutes of the store posting the PO [purchase order]) for pick, pack, and ship. Electronic order confirmations, advanced ship notices, and invoices are generated back to the franchise store and/or franchise owner.

The five month project reduced the number of vendors the retailer must interact with, the number of POs generated weekly, and the number of weekly vendor shipments. It also reduced vendor SKU minimum order quantities, freight shipping costs, and item acquisition costs. The time frame between product ordering and delivery was improved as well.