Challenged by a complex supply chain and volatile business conditions stemming from the Covid-19 pandemic, leaders at equipment manufacturer Core Health & Fitness realized they needed to revamp their logistics strategy to stay competitive. The company turned to Chicago-based fourth-party logistics services provider (4PL) Redwood Logistics in early 2022 to get a better handle on its supply chain problems and today is reaping the rewards of an integrated, tech-based logistics solution that provides greater visibility across its manufacturing supply chain.
“Our partnership with Redwood Logistics has been instrumental in overcoming the supply chain challenges brought forth by the pandemic,” Ken Eastman, chief information officer at Core Health & Fitness, said in a statement describing the project. “Redwood’s robust, fully integrated solution has provided us with the end-to-end visibility we required to enhance our global manufacturing supply chain.”
MANAGING VOLATILITY
Navigating the ups and downs of the pandemic economy was especially difficult for manufacturers like Core Health & Fitness, which makes, sells, installs, and supports commercial fitness equipment and related digital solutions—the company is an original equipment manufacturer (OEM) for some of the fitness industry’s top-tier brands, including Stairmaster, Schwinn, and Nautilus. Core’s already complex and evolving supply chain ecosystem was further strained by the shifting consumer habits that accompanied the pandemic years—from an early explosion in demand for at-home gym equipment to a return to more normal conditions at different times in different places. Company leaders decided they needed a logistics partner that could help them manage the volatility.
As a 4PL, Redwood Logistics develops customized end-to-end supply chain solutions for shippers using its logistics-platform-as-a-service (LPaaS) model, an open platform that allows customers to mix and match partners, technologies, and solutions to create their own unique, digital logistics footprint. Redwood leveraged its expertise to improve transportation management, cross-border trade, and visibility throughout the Core Health network.
PUTTING TECHNOLOGY TO WORK
To address Core Health & Fitness’s challenges, Redwood applied what company leaders described as a “unique combination of logistics execution and supply chain technology” to improve overall business processes, service, and the overall experience for Core Health’s customers as well as its internal stakeholders. Redwood started by implementing Oracle Transportation Management (OTM) software as well as Oracle’s Global Trade Management (GTM) solution. The 4PL then integrated the project44 real-time visibility platform into the solution via RedwoodConnect, enhancing visibility across Core’s supply chain. Leveraging the 4PL’s logistics expertise, Redwood managers then analyzed Core’s less-than-truckload (LTL) shipping data to find rate savings that would fund some of the technology enhancements.
The end result? A nearly 9% savings in LTL costs that has allowed Core Health & Fitness to invest in further technology upgrades to enhance that desired end-to-end visibility. In turn, the improved visibility is helping the company provide better, more agile service to its customers and business partners.
“We’re now not only able to ensure a seamless customer experience but also to further solidify our commitment to quality and innovation in the fitness industry,” Eastman said in the statement.
