Logistics company 3PD moves into limelight
Furniture accounts for 25% of revenues
Gerri Hunt -- Furniture Today, May 27, 2008
MARIETTA, Ga. — Many people may not know the name 3PD yet, but its work is beginning to draw attention.
The last-mile logistics and delivery service provider was named a “Top 50 Logistics Company” for 2007 by trucking industry trade publication “Transport Topics.”
3PD makes white-glove deliveries of appliances, building materials and other items — but furniture makes up 25% of revenue, said Will O’Shea, chief sales and marketing officer.
Founded in 2001, 3PD acquired GTS in 2006 and Affinity Logistics in 2007. Every year, the company makes more than 4.7 million house calls, giving everything from four-poster beds to sectional sofas the delicate handling they require.
“A lot of folks are looking for a single solution, and we are scalable across all of their markets,” he said. “A whole host of companies may end up using local courier services. A lot of solutions are agent-based and outsource the delivery, so they’re just the middle man.”
But 3PD has 560 operating locations in 48 states in the United States, and has recently expanded into Canada and Puerto Rico.
3PD’s delivery solutions can be tailored to any size company. While its client list includes Ashley Furniture, William-Sonoma, Pottery Barn, West Elm, JCPenney, Macy’s and Federated Department Stores, smaller retailers fit the bill as well.
“In some cases, retailers don’t have the volume for a dedicated solution,” said O’Shea, “or some of the smaller players just don’t have the technology.”
In the fourth quarter of 2007, 3PD started offering a store-based model, which O’Shea said is getting a lot of traction.
“Retailers in the past required their management to get their own deliveries made, including faxing information and making phone calls,” he said. “Our solution is 3PD.com.”
The site offer online order entry, so clients can log in and enter information. The stores are equipped with a bar code printer, and drivers have hand-held devices so they can scan items at the store and then deliver them. If an item is damaged or has another exception, an e-mail can be sent immediately to the customer.
While the system simplifies the delivery process for the smaller retailer, it can really streamline operations for larger ones.
O’Shea described one company that had 42 stores, and was adding 25.
“It was a challenge, because the 42 stores had 42 different processes,” he said. “We came in and got all the associates on the same page. They now have one single solution, and all of that back-end savings.”
“There is no investment from an IT or time standpoint,” O’Shea pointed out. “There’s not a lot they need to do.”
3PD, however, does a lot.
The white-glove delivery service provides complete product deluxing and placing products within a customer’s home right where they want it. It also includes blanket-wrapping during transit, last-minute touch-up, assembly services and old merchandise pickup.
The standard delivery service offers product placement in the customer’s room, simple assembly and removal of debris.
The threshold delivery service offers straightforward drop-offs of cartons or unpacked products to the customer’s doorstep.
Customers have been very receptive to the checks that 3PD performs on its employees.
“We have a very detailed survey program that measures our delivery teams every day,” said O’Shea.
The survey looks into specifics such as whether the delivery personnel wore booties over their shoes in the customer’s home, and if deliveries were made within a three-hour time window.
“We don’t simply take an item, stick it on a truck and deliver it,” said O’Shea. “We’re looking for partners who put a heavy emphasis on customer service.”
The last-mile delivery market is still fragmented, with a lot of competition that is very regionalized in certain areas of the country, including many mom and pop players. Nevertheless, 3PD’s revenue has exploded, moving from $75 million in 2006 to $300 million in 2007.
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