Case Studies > Enhanced Logistics for Direct-Store Delivery of “Trash and Trinkets” Spells Serious Success for Novelty, Inc.

Enhanced Logistics for Direct-Store Delivery of “Trash and Trinkets” Spells Serious Success for Novelty, Inc.

Company Size

1,000+

Region

America

Country

Canada
United States

Product

Omnitracs Roadnet
Territory Planner
Info Center
MobileCast

Tech Stack

Omnitracs Roadnet Transportation Suite

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Customer Satisfaction
Productivity Improvements

Technology Category

Functional Applications - Fleet Management Systems (FMS)
Functional Applications - Remote Monitoring & Control Systems

Applicable Industries

Retail

Applicable Functions

Logistics & Transportation
Warehouse & Inventory Management

Use Cases

Fleet Management

Services

System Integration

About The Customer

Novelty, Inc. is a retail powerhouse specializing in novelty items such as poker chip key chains, movie promo air fresheners, biker sunglasses, and rhinestone lighters. Founded by Todd Green in 1980, the company has grown significantly, servicing 11,000 convenience stores across the U.S. and another 800 in Canada. Novelty employs a unique Guaranteed Sale program that does not require individual store owners to carry any cost of Novelty’s products, but simply provide in-store display space to share in the profits of sales. The company provides a complete turnkey merchandising solution, managing everything from marketing to in-store display. Novelty’s route professionals revisit stores on a 1-4 week cycle, rotating out products that are not selling and replacing them with newer items.

The Challenge

Novelty, Inc. faced significant challenges in managing its distribution logistics for its direct-store delivery (DSD) business model. With a unique Guaranteed Sale program, the company needed to ensure efficient and cost-effective delivery of its novelty items to 11,000 convenience stores across the U.S. and 800 in Canada. The company’s route professionals were responsible for servicing these stores, adding, replenishing, and removing merchandise on a constant basis. However, the rising mileage costs and the need for better territory and routing management were major concerns. Initially, Novelty selected a third-party solution, but it quickly became apparent that the software could not adapt to the variables and scope of their business practices.

The Solution

To address its logistics challenges, Novelty, Inc. implemented the entire Omnitracs Roadnet Transportation Suite, including Territory Planner, Roadnet, Roadnet Info Center, and MobileCast. This suite of solutions allowed Novelty to better manage its territories and routing, cutting transportation costs and improving customer service. Territory Planner and Roadnet helped balance territories in terms of the number of customers and weekly miles for each route professional, ensuring efficient routing and better mileage cost management. MobileCast provided real-time tracking to ensure routes were being followed as planned, while Roadnet Info Center offered greater visibility into daily routing operations. These tools enabled Novelty to understand and identify actual costs, stops per mile, and time spent servicing customers, leading to more efficient operations and happier route professionals.

Operational Impact

Novelty, Inc. achieved a significant reduction in mileage costs by using Omnitracs Roadnet Technologies’ integrated suite of solutions. The company was able to better understand and identify their actual costs, stops per mile, and time spent servicing customers.
The deployment of MobileCast and Roadnet Info Center provided real-time tracking and greater visibility into daily routing operations, ensuring routes were followed as planned and improving overall efficiency.
The use of Territory Planner and Roadnet allowed Novelty to balance territories and manage mileage costs more effectively, leading to better customer service and more efficient operations.
Novelty’s route professionals were able to work more efficiently, leading to increased job satisfaction and more time to service customers.
The company realized an 8% reduction in mileage costs in one of their newly optimized territories, indicating the effectiveness of the implemented solutions.

Quantitative Benefit