knoll--Reduced Transportation Costs, Increased Productivity, Improved Customer Service

By January 2003, Penske and Knoll had reached their goal with little interruption to Knoll's overall business operations. 

Knoll customers were now receiving orders in a single shipment.  All products from Knoll's manufacturing plants were being routed to a specified mixing center.  As a result, Knoll has reduced its overall distribution costs, including a 10 percent reduction in transportation and warehousing costs.

Penske's unique "footprint" method has also enabled Knoll to improve order accuracy and expedite outbound shipping.  Because each product received during an inbound shipment is planned for in the "footprint," Penske can easily identify missing items and quickly load trailers.  By streamlining its product flow, Knoll has realized a 45 percent increase in its customer satisfaction rating for shipping and transportation.

In addition to reduced costs and increased customer satisfaction, Penske has provided Knoll with several more indirect benefits.  Centralizing shipments has increased order visibility, providing Knoll with information that was not captured or unavailable in the past.  Through Penske's Open Order Report system, Knoll can measure the impact of production delays on shipping operations and customer service while tracking open order issues.  This information is used to identify and correct problems during the order-to-fulfillment process, as well as keep customers informed on order status.  By allowing Penske to manage open order issues, Knoll's sales force spends less time resolving problems and more time selling.

"Knoll's ability to ship customers a complete and accurate order provides us more than cost savings - it provides us a competitive advantage in the marketplace.  Our customers are more satisfied and our operations, from the warehouse and beyond, are more efficient."
Rich Cirulli, Director of Logistics, Knoll, Inc.

Penske's success at the East Greenville and Holland mixing centers has paved the way for future collaboration with Knoll.  In addition to being Knoll's logistics operator, Penske recently began providing Knoll with LTL, inventory clearing and field support services.  With an increased understanding of Knoll's operations, Penske continues to improve logistics operations and, ultimately, customer satisfaction for Knoll customers throughout North America.