Opening the Door to 3PL Leasing and Beyond

Customer: Arrow Tru-Line, Inc. 

Murphy Warehouse Company Services: 3PL Leasing Benefits

Challenge: Meet Expansion Needs

Solution: When Ohio-based Arrow Tru-Line (ATL), which provides high quality components to the garage door industry, wanted to expand operations into the Twin Cities, the company didn't want to be burdened by fixed costs, such as a long-term building lease.

The solution? 3PL leasing - a unique option offered by Murphy that leverages more than 2.5 million square feet of the company's space in the Twin Cities. 3PL leasing with Murphy offered Arrow Tru-Line the flexibility it needed by providing warehouse space, added logistics services and professional staff, and a favorable, short-term lease.

ATL expanded its operations to the Twin Cities, occupying 20,000 square feet of Murphy's Northtown warehouse in Fridley, MN with a flexible, 90-day lease term, and Murphy staff running the operation.

"ATL employees trained the Murphy team in our operations and quality standards, but we also learned a great deal from them," says Fred Dannhauser, CFO of ATL. ATL measures the productivity of all its five distribution centers and the Murphy-staffed Northtown location - its only outsource location - ranks as the most efficient.

"The Murphy operation in Northtown can better accommodate the natural ebb and flow of customer demand because if things are slower, or we need less staff, Murphy can shift those resources to other customers," Dannhauser adds.

Whether you're a larger company like ATL that requires full-scale operational support in a warehouse staffed with a complete logistics team, or a small entrepreneurial, start-up, 3PL leasing is a smart option for business owners.