PFSweb, Inc. (NASDAQ: PFSW) of Plano, Texas has added another 167,000 sq. ft. to its new 435,000 square-foot Airways Distribution Center to accommodate fulfillment of spare parts for an undisclosed consumer electronics manufacturer under a three-year expansion of an existing contract. The expansion required a $1 million expenditure accommodating state-of-the-art equipment to do product fulfillment activities, including inventory management, integrated reverse logistics and transportation management. PFSweb will handle about 30,000 SKUs, initially fulfilling about 4,000 business-to-business shipments a month to the company's dealers and parts distributors.
Plano, TX / Southaven, MI (PRWEB) February 12, 2005 -- PFSweb, Inc. (NASDAQ: PFSW) has leased an additional 167,000 square feet at the new Airways Distribution Center in Southaven, Miss., to handle fulfillment of spare parts for an undisclosed consumer electronics manufacturer under a three-year expansion of an existing contract. The value of the contract was not disclosed.
PFSweb, a global provider of integrated business process outsourcing (BPO) solutions, said the agreement with the company - a client since 1999 - is effective in February, with shipments planned to start in April.
The new lease brings to 602,000 square feet of total space that PFSweb will be operating at the industrial park created by Industrial Development Inc. (IDI) of Atlanta, Ga. Operations to support a large, three-year contract with another Fortune 500 consumer products client began in early January in the adjacent portion of the building. (See Jan. 10, 2005 announcement.).
"Services will include product fulfillment activities, including inventory management, integrated reverse logistics and transportation management," said Mark Layton, senior partner and chief executive officer of PFSweb. "We will handle about 30,000 SKUs, initially fulfilling about 4,000 business-to-business shipments a month to the company's dealers and parts distributors. The capital expenditures for this expansion are currently estimated to be approximately $1M."
"This agreement marks our second major services parts client," Layton added. "Last year we began operating the Raytheon Aircraft Parts Inventory & Distribution (RAPID) facility in Grapevine, Texas, handling more than 60,000 different parts onsite for its customers in the Americas. We also handle Raytheon Aircraft's European customers from our Liège, Belgium, and center."
"Throughput capability for this client will be enhanced by deployment of a Siemens PickDirector RF Cart System," said Scott Talley, Partner and Vice President-Worldwide Distribution at PFSweb. "This wireless, computer-activated, light-directed item selection system will increase accuracy and speed while reducing operating costs. Automated pick carts are highly adaptable to changing business requirements.
"From an operations standpoint, our long-term relationship with this brand-name company minimized the cost of this modification to its current supply chain process," Talley noted. "By outsourcing to PFSweb, this client is expected to enjoy improved order accuracy, enhanced customer satisfaction, faster order fulfillment, flexible warehouse capacity and reduced inventory, direct costs and overhead."
Known as the "brand behind the brand," PFSweb provides seamless, transparent, "best-in-class" supply-chain efficiencies and management for its Fortune 500 and Global 1000 clients. PFSweb currently warehouses, manages and fulfills more than $1 billion annually in merchandise and transactions from its distribution facilities in Memphis, Toronto, Canada, and Liège, Belgium.