Transportation & Logistics International - Spring 2017 - 65

MANUFACTURING
About 400,000 square feet in the Kenosha distribution
center is dedicated to finished product as well as some
materials with another 100,000 square feet for parts and
accessories. "The remaining nearly 100,000 square feet
still has plans being developed, but we want room to keep
growing," Merwin explains. "We expect to grow into it or we
could go down a few different paths, such as light assembly/
kitting or finishing assembly for a variety of products."
Ariens' manufacturing facilities continue to increase capacity as the company grows. "We can bring larger volumes
of materials into Kenosha and feed it to the plants, keeping
trucks full both ways," Merwin notes.
Ariens' Kenosha facility is key to serving its customers
and turning product around quickly. "It's a staging area for
production, materials and feeding production back and
forth," he adds. "The hub-and-spoke network allows us to
control freight and move products to serve our customers in
a highly weather-dependent business."
Hub and Spoke
A true hub-and-spoke network, Ariens is able to fulfill LTL
orders at a lower cost by shipping full truckloads from its
hub to its spoke locations. "We move everything by full
truckload within the network, from Kenosha out to the
distribution centers throughout the country," Merwin
explains. "Final delivery is typically done LTL. That's why
we have those regional distribution centers - to move every
product we can as far as we can by full truckload. A true
hub-and-spoke network allows us to control that cost."
Ariens has had changes in its distribution network, as
well as 3PL providers of transportation and warehouse
management. The Kenosha building represents the final
piece of those changes. "We are coming up on two years
now with our 3PLs and new regional DC network, and have
yielded a nice savings to get back on track in terms of logistical costs, shaving roughly 2 percent off of our top line."
The consolidation of the four Midwest facilities into
Kenosha will further help. "Once you get past the materials
and the labor to build our products, logistics is our next
biggest cost," Merwin adds.
Ariens plans to continue growing by looking for opportunities to add another spoke in the western United States.
"Five to 10 percent of sales are in the western third of the
country, which is small but has a lot of potential," Merwin
says. "It's a big market and one we want to grow. We will
look for the opportunity to add another spoke where it
makes sense in the West, which would target both lawn and
garden and snow product distribution."
SPRING 2017 TLIMAGAZINE.COM

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http://www.wisconsinlift.com/ http://www.TLIMAGAZINE.COM

Table of Contents for the Digital Edition of Transportation & Logistics International - Spring 2017

Table Of Contents
Transportation & Logistics International - Spring 2017 - Cover1
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Transportation & Logistics International - Spring 2017 - Cover3
Transportation & Logistics International - Spring 2017 - Cover4
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue4
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue4A
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue3
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue3a
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue2
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue2b
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue2a
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue1
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue1a
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol7issue4
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol7issue3
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol7issue2
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol7issue1
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017fall_vol2
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017fall_vol1
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017summer
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017spring
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017winter
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2016fall
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2016summer_vol1
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2016summer_vol2
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http://www.nxtbook.com/nxtbooks/phoenix/tli_2015fall_v2
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015fall
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015summer
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015spring
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015winter
http://www.nxtbook.com/nxtbooks/phoenix/tli_2014fall
http://www.nxtbook.com/nxtbooks/phoenix/tli_2014summer
http://www.nxtbook.com/nxtbooks/phoenix/tli_2014spring
http://www.nxtbook.com/nxtbooks/phoenix/tli_2014winter
http://www.nxtbook.com/nxtbooks/phoenix/tli_2013fall
http://www.nxtbook.com/nxtbooks/phoenix/tli_2013summer
http://www.nxtbook.com/nxtbooks/phoenix/tli_2013spring
http://www.nxtbook.com/nxtbooks/phoenix/tli_2013winter
http://www.nxtbook.com/nxtbooks/phoenix/tli_2012fall
http://www.nxtbookMEDIA.com