new jersey whitepaper

Moulton New Jersey

Moulton Fulfillment

2014

Moulton Fulfillment | 7850 Ruffner Ave, Van Nuys, CA 91406 | www.MoultonFulfillment.com

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Contents

CONTENTS 1

STATEMENT OF PURPOSE 2

THE DECISION TO RELOCATE 2

WHY NEW JERSEY? 4

THE NEW MOULTON FACILITY 5

BENEFITS 7

CONCERNS 8

CONCLUSION 9

Commented [PM1]: Where / How / When the audience receives and reads this document should dictate how it looks, and the tone. How would you like to distribute? Email Blast? Download from website? etc. Then do you want to send this to designer to polish the look?


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Statement of Purpose The purpose of this whitepaper is to explain and educate all Moulton

stakeholders, current and prospective, regarding the decision to relocate the Moulton

East Coast Fulfillment Center location from Charleston, South Carolina to Dayton, New

Jersey. We will address and further examine the rationale for the move, the choice of

location, specific information about New Jersey, and stakeholder benefits and concerns.

The Decision To Relocate Moulton started as a technology and data management company over 40 years

ago and has since emerged as a leader in the DRTV order fulfillment and logistics

industry. With proprietary products like SMART Shipping™ and SMART Fulfillment™,

we continue to leverage our tech knowledge to be pioneers in our field. We have made

huge increases in efficiency thanks to our technology, and NOW we are also focusing

on strategizing other aspects of our operations…such as our geographic locations.

Moulton has had bicoastal order fulfillment, warehousing, and shipping for a

number of years and, as a result, has experienced a great deal of growth and increased

operational efficiency. Our Charleston, South Carolina location has allowed us to

operate on both the east and west coasts and significantly decrease our transit times

and shipping costs to those customers on the East Coast. However, we have come to

find that South Carolina is not the optimal location from which we could operate.

Inbound transit via ocean shipping can take a long time, making inventory management

more difficult. Inbound freight lag time, and a number of other obstacles, are now being

overcome with our decision to move from Charleston, South Carolina to a more

advantageous location. The last thing any seller wants to happen is to find that they do

not have adequate inventory in the right location when it is needed. A more efficient

facility location will allow for overall decreases in costs and shorter inbound and

outbound transit times.

Commented [PM2]: I like explaining what the document is and what its goal is. It helps me as a reader decide if its information I am interested in. I think this intro sounds a little too formal. If we were a public company giving our financials this would be great. Let's change the tone to a little lighter, more casual.


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After much research and discussion, we have found that a location in the

Northeast is in the best interest for us and our clients. The greatest concentration of

consumers lies in the northeastern region of the country, so being able to reach those

customers in the shortest amount of time is beneficial to anyone selling a consumer

good, whether it is through DRTV, retail, or eCommerce. In addition to having the

greatest concentration of consumers, the Northeast also has the highest average

household income.

According to the U.S. Bureau of Labor Statistics’ Consumer Expenditure Survey,

in 2012/2013 households in the Northeast United States had a higher average income

than any other region. In addition, they ranked first in average annual household

expenditures. Expenditures on consumer goods by category indicate that the average

household in the Northeast U.S. spent more than the national average in all categories.

In fact, the Northeast and West regions (corresponding to Moulton’s locations) ranked

first and second in all categories except Tobacco Products & Smoking Supplies.

Commented [PM3]: Although interesting, I'm not sure if this information is relevant for the move. This would be relevant if we were opening a physical retail store, but we ship to the consumer, so we can reach them from anywhere. Its really more about the distance, cost, and time of reaching them.


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Why New Jersey? Shipping Zone Optimization

The move to New Jersey from South Carolina causes a preferable shift in our

shipping zones. A study done in July, based on Moulton’s historical shipping data,

verifies that the move will not impact

our ability to eliminate shipping zones

7 & 8. This means we can continue to

offer reduced shipping rates to

customers all over the country.

Faster Inbound Transit

Inbound ocean freight will enter through New Jersey's Port Elizabeth Marine Terminal.

Located just east of the Newark Airport and New Jersey Turnpike, Port Elizabeth

operates under the Port Authority of New York & New Jersey. Due to the high volume

demand in the Northeast, it is the largest port on the East Coast (3rd largest in the

country) and is the first stop on the East Coast for all major container ships. As a result,

this will shorten inbound transit times by

a few days when compared to shipping

Ocean to South Carolina. Typical time-

in-transit from China to Port Elizabeth is

25 days (China to SC is approximately

28 days).

Commented [PM4]: Let's replace "Best" with something like "Low" or Reduced Shipping Costs. Best is a bit subjective and could be argued.

Commented [PM5]: Let's rephrase the opening sentance to "Inbound ocean freight will enter through New Jersey's Port Elizabeth.....


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Port Development Project

Billions of dollars are currently being invested into the development of the New

Jersey ports. Included in these plans are the addition of multiple, state-of-the-art,

cranes, rail yard facilities, and improved process efficiencies. Combined with the

expansion of the Panama Canal, Port Elizabeth is anticipating a large increase in ocean

shipping traffic from Asia. The Port Authority’s proactive approach to this predicted

growth has recently made New Jersey a hotspot for new business opportunities.

Though the once shallow bay has already been modified to be deep enough for

freightliners, there are plans to further dredge the bay and to raise the height of the

Bayonne Bridge in order to accommodate even the largest ships.

The New Moulton Facility In anticipation of our projected growth we have acquired 200,000 sq. ft. of

warehouse space in Dayton, NJ: 50,000 sq. ft. larger than our former South Carolina

facility. The facility is approximately 45 minutes from Port Elizabeth and Newark Liberty

International Airport, and is only about an hour from New York City.

We have already had a lot of positive feedback from a number of clients wanting

to increase their inventories on the East Coast. Additionally, we have been fortunate

enough to attract new business from local organizations in need of our expert fulfillment

and logistics services. The Moulton New Jersey facility address is provided below:

Moulton Fulfillment

200 Docks Corner Rd #211

Dayton, NJ 08810-1530


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Moulton’s Fulfillment Services

Though we may be in a new location, the same great Moulton services are not

changing. If you were previously using our Charleston, SC facility you should see no

changes to our operating processes. Regardless of which Moulton location(s) you

choose, our warehousing, inventory management, order fulfillment, logistics and

shipping, and customer service offerings are consistent. Your personal Moulton

Account Manager and support services will still be based out of our headquarters in Van

Nuys, California.

Customs and Duties

The transition from South Carolina to the new Moulton location in New Jersey will

have no impact on customs or duties rates and procedures. Also, Port Elizabeth Marine

Terminal is C-TPAT (Customs-Trade Partnership Against Terrorism) certified and has

24-hour security and CCTV surveillance.

A New Warehouse Management System In 2015

The opening of the Moulton New Jersey facility also coincides with the launch of

our new warehouse management system (WMS). We will be testing the system in our

West Coast location first, but expect to integrate it into the New Jersey operations in

early 2015. The new WMS, combined with our groundbreaking proprietary Moulton

SMART Shipping™ technology, will increase inventory/warehouse management and

order fulfillment efficiency resulting in:

Faster order processing times.

Ability to accept new and different product-types.

Accommodation of larger SKU counts

The more optimized your inventory is organized in our warehouses, the faster we

can pick, pack, and process your orders. Consequently, more orders can be processed


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and shipped each day. This will decrease the cost of labor per package, ultimately

increasing your margins as well as your customers’ satisfaction.

Benefits Inbound Shipping: Port Elizabeth Moulton’s Facility

Transportation via truck is very easy due to the accessibility of the New Jersey

Turnpike and a number of other major interstate highways. The fastest and most direct

route from the Port Elizabeth Marine Terminal to Moulton’s New Jersey facility is via

Interstate 95 South. In addition to ground transportation via truck, there are also over

1000 miles of rail throughout the state. The feasibility of freight rail use for inbound

transportation is still in the exploration stage. More information will be available as

research continues.

Inventory Management, Shipping Costs, and Transit Times

As a Moulton client you trust us with your inventory management, order

fulfillment, order shipping, and customer service. By optimizing our operations we can

lower costs to you, which can then be passed on to your customers, which can result in

increased customer satisfaction, customer loyalty, increased sales volume, and

ultimately, increased profits.

A location in the Northeast

allows us to reach more

customers in less time at

lower cost.


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Consumer Population Density

As explained earlier, the population of consumers in the northeastern region is

denser than in any other part of the country. This means that the majority of orders

filled and shipped by Moulton will travel fewer miles to deliver your products to your

customers in less time. As a result, Moulton clients can expect to see an increase in

customer satisfaction,

which will decrease

negative customer

service interactions

and returns costs.

Concerns Our Southern Clients

Just because

we have relocated to

the Northeast doesn’t

mean we have forgotten about our valued clients in the South. We have a number of

Southern clients, with whom we have developed amazing relationships, and we do not

want them to feel abandoned or inconvenienced. We are doing everything we can to

ensure that the transition to our New Jersey facility is as smooth and easy as possible

for everyone involved. Once Moulton’s new facility is fully operational, we believe that

all of our clients, despite their location, will benefit from being closer to so many

potential customers who want to buy their products.

Inventory Relocation: SC NJ

The decision to relocate was sudden, and so we are going the extra mile to help move

existing inventory from South Carolina to New Jersey. We understand that the decision

to relocate was ours and that it is only fair that we absorb the cost of transporting our


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clients’ inventories, currently in the South Carolina facility, to the new facility in Dayton,

NJ. Also, Moulton’s staff will be working closely with our clients to coordinate inbound

transportation from our clients’ manufacturers to our new location.

Conclusion We are very excited about the New Jersey location and anticipate a great many

opportunities in the future as a result of the relocation. We hope that you are equally

excited and are looking forward to the many benefits of a location in the Northeast.

Above all, we want all of our valued clients to be happy and prosperous. If you have

any questions or concerns regarding the new location please contact your dedicated

Moulton Account Manager and they will be happy to help.

We look forward to seeing you in New Jersey!


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THANK YOU.

FOR MORE INFORMATION CONTACT: Patrick Moulton

[email protected]

mailto:[email protected]

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