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The Company Leveraged Its Operations After Outsourcing Its Logistics, Located in a New Space, in São Paulo
Within 5 years, the logistics outsourcing established by Starrett, a manufacturer of saws, tools, and measuring instruments, based in São Paulo, generated a 200% increase in the company’s operational volume. Monthly, about one million kilograms of manufactured products are sold and processed in the new logistics operation. The new logistics area is located in Hortolândia, in the countryside of São Paulo.
The relocation of the logistics operation from the Starrett factory, based in Itu (São Paulo), to the Distribution Center (CD) in the logistics condominium in Hortolândia, also in São Paulo, began in 2017. The outsourcing model for logistics operations involves long-term contracts with specialized industries in this type of operation, aiming to improve supply chain management and, consequently, achieve better results and operational efficiency, which reduces costs and enhances Starrett’s competitiveness.
“Outsourcing logistics operations is a global skill. It is a new example of business management that prioritizes, among other aspects, the homogeneity of industrial processes,” comments Fabiano Leite, Logistics Manager at Starrett Raguinal.
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In terms of size, the Starrett distribution center in Hortolândia, São Paulo, occupies an operational area of nearly 5,000 square meters and has a height of 13 meters.
Space Change
With the introduction of new goods into its production lines, Starrett required a physical space that would enhance productivity. Thus, the factory sought a strategic solution to relocate its warehouse to the distribution center in São Paulo. Furthermore, the space transition provided Starrett with a more detailed focus on business.
Today, Starrett’s Logistics Department has over 60 employees, both internal and external, an average of 12,000 control items, and also maintains partnerships with the main delivery representatives in the market, achieving a 97% delivery performance. Currently, logistics serves 100% of the national territory and more than 40 countries.
For the manager, maintaining cooperation and balance among all areas related to the logistics department, fostering partnerships with all related sectors, is one of the major challenges.
Looking ahead, the proposal aims for the decentralization of the Starrett distribution center in São Paulo and the development of several advanced international distribution points.
History of Starrett
Starrett is one of the largest manufacturers of saws, tools, and measuring instruments in the world and began in the United States in 1880 when Laroy S. Starrett invented the combined square. Its history in Brazil started in 1956.
Today, the company has factories in the USA, China, and in Itu (São Paulo), Brazil. Starrett develops over five thousand products, including band saw blades for cutting metals, precision tools, band saw blades for cutting metals, wood, and meat, and measuring instruments.
Starrett products are sold in over 100 countries through a network of distributors that serve a wide range of segments, from aviation tools, marine, and automotive industry, to agricultural equipment and tools for manual work for electricians, builders, carpenters, plumbers, etc.
Advantages of Outsourcing Logistics
- Cost Reduction (one of the most important advantages);
- Better quality in operation development;
- Qualified professionals for logistics activities;
- The technology, vehicles, and equipment used in specialized companies have good quality;
- Outsourcing logistics provides more efficiency in delivery and cargo transport;
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