“Working with ErringtonIM has allowed us to streamline our marketing fulfillment process and contain our related costs as we grow. Their team provides us with scalable and strategic one-stop solutions that take pressure and time commitment away from our team so we can concentrate on building our business instead of managing execution. ErringtonIM has become an invaluable part of our marketing efforts and we are looking forward to a long and productive relationship as we continue to expand.”

Roxul Insulation integrated marketing strategy case study testimonial
Dan Giansante – NA Marketing Manager

Introduction

Roxul Insulation integrated marketing strategy case study introduction

ROXUL is the North American subsidiary of ROCKWOOL International, the world's largest producer of stone wool insulation.

ROXUL Inc. North America has been in operation since 1988. ROXUL is headquartered in Milton Ontario, and has additional manufacturing facilities in Grand Forks, British Columbia and Bhaylia, Mississippi.

ROXUL manufactures stone wool insulation products for residential, commercial and industrial purposes throughout Canada, USA, and Mexico. Their marketing catalogue includes over 500 SKUs of materials used by 200+ sales and distribution staff.

Roxul Insulation integrated marketing strategy case study introduction

The Challenge

Roxul Insulation integrated marketing strategy case study challenge

When Roxul approached Errington to manage their fulfillment needs, they had the following challenges:

Reporting

Roxul Insulation integrated marketing strategy case study reporting

ROXUL required more timely and accurate awareness of materials consumption, versions, user activity, and spoilage. This was to better evaluate product effectiveness and understand the activities and success of their sales and distribution staff. Ultimately, they wanted to better quantify the financial impact of spoilage or damage.

Roxul Insulation integrated marketing strategy case study reporting

Storage

Roxul Insulation integrated marketing strategy - storage

The existing storage methods were inadequate to their growing and changing requirements.

Roxul Insulation integrated marketing strategy - storage

Accuracy

Roxul Insulation integrated marketing strategy - Accuracy

Evolving circumstances required a standard method of communication about inventory, part numbers, or methods of ordering. In its absence was the risk of product waste and increases in cost of sales.

Roxul Insulation integrated marketing strategy - Accuracy

Timeliness

Roxul Insulation integrated marketing strategy - Timeliness

Shipments were sometimes late, especially during peak periods. This lead to lost opportunity and the risk of erosion of brand reputation.

Roxul Insulation integrated marketing strategy - Timeliness

Version Control

Roxul Insulation integrated marketing strategy - Version Control

An audit of the services, prior to engaging Errington, revealed that order fulfillment for the same items was sometimes duplicated including some outdated versions. This posed the risk of brand misrepresentation.

Roxul Insulation integrated marketing strategy - Version Control

Our Solution

Roxul Insulation marketing strategy

As an initial step in developing a fulfillment solution ErringtonIM did a complete analysis of the program and the state of the materials. We were able to extract all of the data necessary to develop an appropriate solution by studying the following criteria:

1

Roxul Insulation marketing strategy

An estimate of the total quantity of each fulfillment item consumed over a 12 month period. This was then used as a point of discussion to determine consumption estimates for the 12 months following the start of the program. In turn, the consumption projections were used to devise a production plan for replenishment to ensure optimal buying, warehousing, and to ensure minimal outages.

Roxul Insulation marketing strategy

2

Roxul Insulation marketing strategy

An analysis was done of 12 month shipping traffic. This focused on 2 areas: the total number of shipments & parts per shipment, and the containers and method of shipment. The analysis of shipments and parts per shipment was done to consider the cost and time effectiveness of the logistics method (i.e., ground, air, LTL, etc.). The other analysis was done to ensure that shipping space and the cost per cube of the space used was optimized.

Roxul Insulation marketing strategy

3

Roxul Insulation marketing strategy

An evaluation of the materials on hand. This was focused on generating a report to determine which materials were either out of date or damaged due to poor warehousing and inventory controls.

Roxul Insulation marketing strategy

The completely integrated fulfillment solution for ROXUL included the following services:

1

Roxul Insulation marketing strategy

Process and workflow optimized warehousing; approximately 20,000 cubic feet of storage for over 500 SKUs of marketing materials.

Roxul Insulation marketing strategy

2

Roxul Insulation marketing strategy

Pick & Pack services seamlessly scaled from approximately 360 to nearly 1,000 shipments monthly. Services are provided same-day for orders submitted before noon on normal week days.

Roxul Insulation marketing strategy

3

Roxul Insulation marketing strategy

Reporting services that offer clarity on overall consumption and distribution, consumption on a per-user, per business segment, per-region, or time defined basis and low-inventory visibility.

Roxul Insulation marketing strategy

4

Roxul Insulation marketing strategy

Web-based ordering to provide users with 24/7 ordering capability on a system that is both PC and mobile accessible.

Roxul Insulation marketing strategy

5

Roxul Insulation marketing strategy

Telephone support for ordering, unusual requests, status updates, or to answer questions about products.

Roxul Insulation marketing strategy

6

Roxul Insulation marketing strategy

Dedicated account manager to provide a single point of contact for all client needs.

Roxul Insulation marketing strategy

7

Roxul Insulation marketing strategy

Logistics planning services to ensure that marketing costs were being contained and constantly improved.

Roxul Insulation marketing strategy

8

Roxul Insulation marketing strategy

Optimized replenishment of all print materials (including print on demand), plastics fabrication, product sample production, P.O.P. production, sign production, and exhibit and display fabrication.

Roxul Insulation marketing strategy

9

Roxul Insulation marketing strategy

Exhibit specific services that include receiving materials, QA checking, repair and maintenance services, and logistics coordination.

Roxul Insulation marketing strategy

The initial conversion to ErringtonIM fulfillment services began with a two-month development of the web access system. This conversion included complete population of product data, photography of all products and contact information.

The second phase, that took approximately one week, included testing and mock fulfillment run-throughs to ensure services were operating smoothly and in the manner the client was expecting.

The final phase was a physical move of all materials to ErringtonIM facilities. Errington provided complete labour and logistics services for the conversion including pack-up, all of which was complete and operational within three business days.

The Outcome

Roxul Insulation integrated marketing solutions - Outcome

ErringtonIM is now in its 4th year of service to Roxul Inc.

Roxul has confirmed the following:

  • Frequency of errors in orders and delays in timing are nearly non-existent having a positive affect on both available opportunities for sales and overall brand impression.
  • Significant savings in replenishment of all marketing materials by taking advantage of ErringtonIM vendor relationship and using an optimized buying model based on consumption.
  • Planned version control and destruction of obsolete materials together with minimal spoilage have reduced cost of sales.

ErringtonIM services allow Roxul to be completely focused on their core competency and business development by ensuring strong, fast, and complete marketing fulfillment services. They are confident that no matter what the request ErringtonIM is their fulfillment partner who gets things done every time with just one simple request.