Venn-Corp was retained to manage the inbound FF&E program for the new construction and/or retrofit of Costco’s 600-plus store and fuel depot development program. Venn-Corp manages the FF&E program from issuance of purchase orders, through warehousing the FF&E inventory, to the job site delivery, all of which is integrated with the program/project schedule.
Venn-Corp has established a flexible supply chain to manage all aspects of the in-bound logistics for Costco’s store development program, including:
Venn-Corp has integrated the in-bound FF&E program with Costco’s purchasing and accounting systems, greatly limiting its investment in staff resources:
Venn-Corp's value-add services have improved the Costco’s management of its store development spend, through tangible, measurable, cost-saving improvements:
Venn-Corp has established a flexible supply chain to manage all aspects of the in-bound logistics for Costco’s store development program, including:
- Arranged for transportation from suppliers and subcontractors to project sites or warehouse pursuant to Costco’s purchase order instructions issued to the vendor.
- Program includes store development in all of North America, Asia and Australia.
- Venn-Corp integrates all modes of transportation to realize the most cost-efficient logistics solutions.
- Venn-Corp manages project-site warehouses and inventories.
- Venn-Corp establishes local, project-site warehouses to manage the FF&E inventory during the project.
- Venn-Corp manages the inventory and disposition of scrap FF&E removed from redeveloped stores.
- Venn-Corp integrates project-site delivery schedules with contractor and installer construction schedules.
- Venn-Corp manages communication with project site and vendors.
- Venn-Corp prepares “just in time” site-delivery of FF&E packages and materials, limiting disruption.
Venn-Corp has integrated the in-bound FF&E program with Costco’s purchasing and accounting systems, greatly limiting its investment in staff resources:
- Venn-Corp receives Purchase Order data from Costco with respect to FF&E vendors’ product specifications, quantities ordered and productions and delivery dates.
- Venn-Corp manages logistics related to the vendor PO until all quantities have been received at site.
- Venn-Corp reports deviations from vendor production requirements to Costco for resolution.
- Venn-Corp reports logistics costs with vendor and contractor costs through Costco’s accounting system.
- Venn-Corp reports on vendor compliance of PO fulfillment through acceptance of project site.
- Venn-Corp provides cost allocation for logistics spend to meet Costco’s accounting requirements.
Venn-Corp's value-add services have improved the Costco’s management of its store development spend, through tangible, measurable, cost-saving improvements:
- Provided transparency and efficient management of $25 million dollars of logistics spend
- Introduced store development logistics budgeting in support of Costco’s capital program
- Developed a multi-vendor consolidation program to reduce line-haul and ocean transport cost
- Eliminated costly vendor-audit program conducted by Costco related to vendor-controlled logistics
- Reduced staff labor costs related to purchasing, transportation and project management activities
