UPS Cellairis Case Study

Challenge:In 2012, Cellairis approached a 700th franchise. Existing logistics moved goods, but big, complex new orders from a national retail giant, plus international growth plans, required improved shipping strategy and world-class performance.Solution:

UPS partnered with Cellairis to retool its global supply chain and optimize warehouse operations. UPS Worldwide Express Freight™ added a critical international transportation component, assuring on-time service and full visibility for pallet shipments. The newly efficient logistics system allowed Cellairis to focus fully on ambitious franchising and international growth.

LEVERAGING LOGISTICS, THE LEADING WIRELESS ACCESSORY BUSINESS IS FREE TO FRANCHISE AND GROW.In their college years, Taki Skouras, Jaime Brown and Joseph Brown recognized a growth industry — selling wireless acces-sories. In 2000, the partners opened stores in malls. Cellairis then grew from retail merchandise … to kiosks … to online locations.

Today, Cellairis is the world’s largest wireless accessory franchise, with 700-plus locations and products from more than 25 Asian manufacturers and 10 domestic vendors. Cellairis seeks master franchisees in 15 international markets.

MOVING PRODUCT Cellairis develops products in Georgia, manufactures them in Asia, imports them to Georgia by air freight, warehouses them

in its Georgia distribution center, then ships them ground and air to franchisees and end-users. There’s little room for error.

“Because of limited physical space in our franchised stores,” says Skouras, “one missed day of orders and products can cost the franchisee dollars and customers … and damage the brand.”

SUCCESS WITH NO STRINGS ATTACHED

STRATEGY SESSION BREAKTHROUGH UPS held a strategy session with Skouras and his team to plan out a newly efficient shipping model.

“We asked a thousand questions,” Skouras says. “And UPS basically dissected our company to learn our business, to really understand it.”

A UPS report detailed 19 logistics improve-ments to save costs and improve processes, each eliminating unnecessary work.

“We wanted to show Cellairis a full view of best practices in logistics,” said UPS’s Area Sales Manager.

To foster big-picture thinking, members of the Cellairis team toured UPS Worldport®, the state-of-the-art air freight shipping center in Louisville.

“It was one of the most impressive opera-tions I’ve ever seen,” says Skouras. “Planes flying in, millions of packages, miles of conveyor belts going 40 miles per hour. I felt like I’d drunk five cups of coffee.”

UPS DELIVERSCellairis tested UPS performance with a critical order. Mistakes? Not an option — a late delivery or misplaced pallet could cost Cellairis up to seven figures.

UPS went to Cellairis’s factory in China to train workers on exacting shipping specifications required by the retailer receiving products.

UPS Worldwide Express Freight then picked up 19 pallets of assorted products in China on a Friday. Precisely packed, the shipment made it directly to the retailer’s warehouse in time for Monday distribution to 2,200 stores. UPS tracking technology let Cellairis constantly monitor its shipment.

“UPS pulled it off without one error,” says Skouras. “They went above and beyond.”

UPS DELIVERS … AGAIN AND FOR THE FUTUREWeeks later, UPS Worldwide Express Freight shipped 30 Cellairis pallets — a load to challenge the capabilities of many air freight shippers. That shipment rolled in right on time.

Cellairis handed over international ship-ping to UPS.

“We’re good at creating wireless acces-sories, UPS is good at getting them where they need to go,” says Skouras. “When it comes to shipping, I trust UPS more than I trust myself.”

The partnership comes at a perfect time, as Cellairis fully focuses on domestic growth and international plans.

“UPS will be a big part of our international expansion,” says Skouras. “They’ll work with us to train international franchisees, plan warehouses and draw up a distribu-tion network.

“You know,” adds Skouras, “a year ago, I thought UPS was just a shipping company.

Today, I think of UPS as a strategic partner, making our whole business more efficient.”

CELLAIRIS VALUE PROPOSITION• UPS redesign of inbound/

outbound supply chain saved Cellairis more than 15 percent on shipments.

• Warehouse optimization improved service levels, pro-ductivity, handling costs and asset utilization.

• UPS Buyer Consolidation for International Air Freight reduced complexity in dealing with multiple international manufacturing sources.

• UPS Worldwide Express Freight gave Cellairis guaranteed on-time service for critical freight pallet shipments.

• UPS Customs Brokerage enabled single-source customs clearance for multiple transportation modes, with savings … and even recovered costs.

• Quantum View™ Manage gave Cellairis real-time status/location of shipments.

© 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved. Reproduction in whole or in part is prohibited without written permission. Persons or publications quoted and the comments of guest contributors do not necessarily represent the corporate opinion of UPS. 01971715 8/14

For more information, contact your UPS account manager today or call 1-800-782-7892

OR CLICK HERE