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CASE STUDY

 
W.C. McQuaide, Inc. Logistics Provider
Built on Service, Strong as Steel
Over 70 Years in Transportation and Logistics

From the snowy Appalachian Mountains in Western Pennsylvania to the sunny beaches of Ft. Lauderdale, W. C. McQuaide, Inc. has facilities to provide logistics services to customers in the steel industry, the yachting business, beverage and food, and many more.

" We’re a one-stop shop. We don’t just load and unload. We offer warehousing, packaging, distribution, and Customs services. "
 
Rick McQuaide, Vice President Business Development and Logistics
 
 
At a Glance
W. C. McQuaide, Inc.
www.mcquaide.com

Industry
Logistics Provider

Solution
Magaya WMS, Magaya Supply Chain Solution
W. C. McQuaide, Inc. has 300 employees, a trucking division, multiple warehouses, and offers complete logistics services to their customers. They own warehouses in Pennsylvania and in Ft. Lauderdale, Florida and a CFS in Port Everglades. They also offer Customs services, packaging, light assembly, cross docking, and inventory management.
 
Challenges
 
In the W. C. McQuaide, Inc. warehouses in Johnstown, Pennsylvania, huge square stacks of beverage cans rise like city blocks inside the warehouse with the twinkle and gleam of nighttime skyscrapers.

Out in the yard, windmill blades over 144 feet long are loaded onto specialty trailers with rear-steerable axles and readied for transport to a wind farm in state or across the country.

All items great and small – the family and staff of W. C. McQuaide, Inc. have experience transporting and storing it all. They started hauling steel in 1936, before the modern road system was built. Construction of the Pennsylvania Turnpike didn’t begin until 1937 and wasn’t completed until the 1950s. As the transportation industry changed over the years, so did McQuaide. The company expanded into general freight and the LTL trucking business. Before the trucking industry was deregulated in the 1980s, McQuaide was one of first companies to have hauling rights to all points in Pennsylvania. If haulers did not have authority to carry cargo to certain cities, they could not book customers for those destinations. “With that authority and an overnight trucking service, we experienced a period of rapid growth,” said Rick McQuaide, Vice President of Business Development and Logistics. “After the trucking industry was deregulated, LTL trucking prices became cutthroat so we returned to our origins in truckload hauling.”

 
Warehousing and Logistics in Pennsylvania

In the 1970s, W. C. McQuaide, Inc. added warehousing and gained more customers and additional warehouses. Rick McQuaide is the third-generation of family to work at the business his grandfather started. Talking about their warehousing operations in Pennsylvania, Mr. McQuaide said, “We partner with manufacturers to manage raw materials and finished goods. With the raw materials, we help the companies manage their production line by offering Just-in-Time service for manufacturers who have little or no warehouse space. We provide the customer with the advantage of renting and paying only for the space they need when they need it. Most manufacturers have peaks and valleys in their seasons, so if they need 50,000 square feet of space now, we have it. If in a few months they need only 10,000 square feet, they only pay for 10,000.”

“We manage multiple accounts under one roof, and that’s how we save our customers money. We can offer cost savings to our customers because we have the equipment such as forklifts that are used for all the cargo items, one computer system, and one manager oversees the operations. Then the name of the game for us is to keep our warehouses full and keep everyone busy throughout the year.”

W.C. McQuaide Inc. also manages the distribution of finished goods. For example, Pepsi uses McQuaide’s warehouse to store empty cans for different flavors of sodas. “We handle 600 million cans through our facility in a year,” Mr. McQuaide said. “Suppliers deliver the empty cans to our warehouse, and we deliver them to the nearby bottling facility as Pepsi needs them.”

Pepsi sends McQuaide orders for daily deliveries of cans to meet specific production schedules. McQuaide can quickly adapt to changes in production schedules ensuring “Just in Time Delivery”. “With us housing the cans, Pepsi can keep their production steady,” Mr. McQuaide explained. “We run a 24-hour shuttle of empty cans to fill requests such as three loads of Diet Pepsi cans in lane 7 and two loads of Mountain Dew cans in lane 5.” McQuaide coordinates inventory levels of raw materials with suppliers of Pepsi to meet peak demands for holidays such as the Fourth of July, Memorial Day, Labor Day, and others.

Another service W.C. McQuaide Inc. offers is packaging. One of their customers sells safety products to retail outlets such as Home Depot, Lowe’s, and other hardware stores. The items such as orange cones are shipped to McQuaide’s warehouse in bulk. “Here at the warehouse, we place the cones in individual packages. This saves on shipping costs as the items are transported from overseas because you can fit a larger quantity in bulk in a container than you could if each item were individually packaged.” The warehouse has an automated labeling system that labels the packages for compliance and UPS shipping for retail distribution based on their customer’s orders.

An example of the oversized cargo W.C. McQuaide Inc. transports is the blades for windmill turbines. A local manufacturing facility builds the blades that will be used in wind farms to create renewable energy. McQuaide coordinates the hauling both locally and as far as California. “Because the blades are oversized, we have to plan the route in advance and get permits from each state. We have escort trucks, but some states require police escorts, too. Our fleet includes trucks that have steering in the rear which enables the vehicle to turn on narrow roads. Otherwise, we’d be limited to roads wide enough to make the turns. So we can offer our customer more options. We also store blades in our yard because winter is not the best time to ship this kind of cargo due to snow and ice on the roads.”

W.C. McQuaide Inc. also hauls truckload quantities of items such as pet foods for Del Monte, beer for Iron City and Anheuser-Busch, and wire coils from Johnstown Wire Technologies.
 
Expanding into Ft. Lauderdale

With the reduction in manufacturing in the US, McQuaide looked for other avenues to expand its business. The company wanted to add import and export services, so they purchased a Container Freight Station (CFS) and warehousing operation in Ft. Lauderdale, Florida in 2009. To create economies of scale, McQuaide operates all the properties of the new division as one. The operation, Frazer McQuaide Warehousing and Logistics, has a warehouse in Pompano Beach and another warehouse operating as Challenge Warehousing in the Port 95 commerce park, a block from the Ft. Lauderdale International Airport, making it easy to return containers to Port Everglades. Both facilities service Port Everglades and the Port of Miami. The Ft. Lauderdale facilities are bonded and approved by U.S. Custom’s General Order, and CTPAT verified. Many of McQuaide’s Florida customers are importers, exporters, and freight forwarders.
 
Selecting Magaya Software

When McQuaide bought the Ft. Lauderdale facility, they decided to install the Magaya Supply Chain Solution and Magaya Warehouse Management System (Magaya WMS). Mr. McQuaide was one of the people involved in making the software choice. “We bought Magaya because it saved us from having to reprogram or write the software we’re using in the Pennsylvania facilities. Magaya made sense for us because it is already set up and ready to use. It has the Bill of Lading documents we need and a warehouse management system so we can assign locations in the warehouse and put items away in those locations. One of the nicest things about the software is the ability to give our customers visible access to their inventory online in real time. That was a big item for us.”

“Unlike other software which takes a lot of time and costs hundreds of thousands of dollars to get set up, Magaya was a very cost-effective solution. The other bonus we like is the ability to generate a quick invoice based on the information in the Magaya system.”

“We also like the fact that Magaya has a network of users, so when you work with a freight forwarder who is also using Magaya software, it is very easy to transfer information between the two.”

When they implemented Magaya software, McQuaide continued to run their old system to check that everything was correct. “We had one of our IT people take a training class to learn Magaya software and then work with our managers.” The inventory reports were also important. “We matched the inventory in our old system, did physical counts, and compared the results with the Magaya software. Now we rely solely on Magaya in the Ft. Lauderdale facilities. We also use it for new customers in Pennsylvania.”

The Ft. Lauderdale facility handles cargo for the yachting and cruise industries, retail stores, drums of specialty oils, nails, phone books, frozen lobster, cars, and boats. Ft. Lauderdale is a major boat building location and has the nicknames “Yachting Capital of the World” and the “Venice of America”. McQuaide Inc. ships and manages inventory of parts used in the assembly of the yachts and boats.

McQuaide uses Magaya software to create Warehouse Receipts (WR), inventory items, and locations. They enter rates per customer and generate invoices. McQuaide has customized some documents by adding some policy statements to WRs and Bills of Lading. “We like that we can choose not to display some charges on certain documents, but the charges are still in the system.”

McQuaide also transfers cargo from one warehouse to another using the Cargo Movements feature in Magaya software. They deconsolidate, return the container, and store items so the customer can defer duty payment until the items are sold, and pick and pack items. “We manage cargo for our customers who are freight forwarders who import items for retailers. We unload it for them, store, and ship it when they need it.”
 
In Closing

McQuaide is also in the final stages of certifying their Ft. Lauderdale warehouse in the Port 95 commerce park under the TSA Cargo Screening Facility program. They also have staff certified to offer Customs and bonding services.

“We’re a one-stop shop. We keep adding services. We don’t just load and unload; we can file Customs documents, pack items and label them with an automatic labeling system,” Mr. McQuaide said. His grandfather’s motto, “Service Right the First Time” is still a key principle for the company as it grows.

“We like to keep up with technology to stay competitive. The software offers us all the features the more expensive ones have. It was easier than buying a custom program that requires spending lots of money before you even get to use it. The decision to use Magaya was an easy one. The more we learn about it, the more we like it.”




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