UPS Supply Chain Solutions®
Core Health & Fitness Supply Chain Customer Story
Core Health & Fitness
When a new-to-the-category company brought together four iconic fitness equipment brands, they needed someone to help cross-train their global supply chain. Combining multiple UPS freight forwarding services with an innovative alternative financing solution, they quickly pumped up their logistics.
How a gym equipment company learned to flex its supply chain muscles.
Vancouver, WA-based Core Health & Fitness (CH&F) was still new to the fitness industry when they brought together four iconic exercise equipment brands. With roots that went back decades, Star Trac®, StairMaster®, Nautilus® and Schwinn® branded equipment had revolutionized workouts and helped millions of people build muscle, confidence and performance. CH&F was looking for financial and logistics resources to help them bulk up their international supply chain and generate sales growth.
The Challenge
CH&F sells directly to health clubs and distributors. Their customers don't always plan orders in advance, which made it difficult to predict sales and shipping volume. Customer lead times were typically inside of supply chain lead times. With large amounts of cash tied up in inventory, the weeks and months that ocean shipments took to reach port hindered the company from investing in operations. They needed more borrowing flexibility and increased support with their global supply chain management.
The Solution
CH&F began working with both UPS Capital and UPS Supply Chain Solutions. Together they began improving CH&F’s supply chain fitness.
- UPS Capital® Services — Utilizing one of the best-kept secrets in alternative financing—UPS Capital Cargo Finance®—CH&F was able to borrow funds against in-transit inventory, freeing up needed cash.
- UPS Ocean Freight — CH&F began using UPS Ocean to move large shipments from China to Europe. In Europe, UPS helped consolidate three independent 3PLs within one UPS facility in Roermond, Netherlands.
- UPS Capital + UPS Supply Chain Solutions — When an underperforming 3PL in Xiamen, China needed to be expanded and relocated, we helped CH&F navigate complicated Chinese regulations, borrow against assets in China and work with local 3PLs in the Pudong Free Trade Zone for warehouse space.
- UPS Preferred® FCL-Rail Service — When European customers needed custom products fast from sites in Asia and the U.S., ocean freight was too slow and air freight was cost prohibitive. This service combined rail movement with a UPS truck network to move shipments through China and Europe.
The Results
With an improved cash-conversion cycle that provided more working capital, Core Health & Fitness was able to execute its growth plan and expand into new markets. Their leaner, meaner supply chain network delivered almost-immediate cost savings and much higher customer-service levels. And because the China-to-Europe rail solution let them meet the customer’s needs, they were able to secure a long-term contract.
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