Synopsis: Project Logistics

Project

Mergers and acquisitions are a major method of growth for businesses everywhere. In the banking industry of America this has become the major avenue of growth. Besides the major cost to actually acquire another company, there are many ancillary costs and projects involved before the name changes. The planning, timing and logistics of the name change is the last and most important element of an acquisitions project. After the acquisition is complete, the real task of conversion becomes apparent. It is also apparent that the physical conversion is beyond the daily routine of banking requirements. ALS was contacted by a major financial institution to design their conversion logistics.

Project Requirements

  • Every item in each bank that had the bank's name on it had to be replaced simultaneously with the acquiring banks name, logo, and trademarks.
  • Over 100 conversion inventory items for each bank would consolidate on to two large pallets of item varieties.
  • The bank did not have a large enough warehouse nor personnel staff to accommodate all of this additional traffic for this significant one time project.
  • State banking regulations required that every bank in their state had to be converted at the start of business on the same business day without fail.
  • Client required all deliveries to be performed within a two business day window of Thursday and Friday so that the retail locations could be converted at opening on the following Monday morning.
  • Regulatory guidelines required the entire project be completed within an eight week window.
  • Because very few retail banks have a receiving dock, all deliveries had to be performed with lift gate equipment and required inside deliveries.

Background

One of America's largest banks had made their largest acquisition to date purchasing a regional bank with over 1000 retail locations in fifteen states. They were now faced with the major logistics project of converting the name change of all locations in minimal time window and that all banks in each state had to be converted at the same time.

ALS Solution

  • With over 1000 locations receiving two pallets of replacement inventory ALS arranged the temporary lease of an accommodating warehouse facility capable of staging over 2000 pallets of inventory to pick and pack from. ALS also arranged a high quality temporary workforce to perform the manual labor.
  • ALS designed an inbound routing program to coordinate the receiving of all vendor materials within a one week period.
  • From a minimum of 18 banks in one state, to the maximum of nearly 200 in the largest state, ALS designed a program to complete the conversion of at least two states each week.
  • Depending on the driving time from origin, materials would be picked and packed on Monday through Wednesday. Trailers would then be dispatched to single break bulk facilities in each destination state. ALS partners in each state would then transfer the pallets on to route delivery lift gate trucks, with two man teams, to complete the deliveries to each identified retail bank location in their state on Thursday and Friday.
  • Bank employees were then able to use the weekend to replace all inventory items. This allowed every bank in the state to open for business on the following Monday morning under their new name.

Results

ALS expertise coordinated all vendor shipments from around the country into our designated warehouse on schedule within one week. All pick and pack was accomplished on schedule allowing sufficient time for all over the road units to complete their line hauls on time. Extra staff and equipment were temporarily increased at each break bulk point so that all the banks in their state could be delivered within two days. The entire conversion project was accomplished within time and cost parameters with no delays. The client bank accomplished their conversion on time and met both client and regulatory conversion requirements.

Transportation Security Administration Veteran-Owned Small Business GSA Advantage Central Contractor Registration

Home | Government | Tradeshows | Projects | Web Site FAQ | Contact Us

| XHTML | Terms & Conditions | Privacy Policy