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Case Studies - Financial


Blackhawk Network

Blackhawk Network, a subsidiary of Safeway Inc., is a prepaid and payments network, a market leader in card-based financial solutions, and the largest provider of third-party prepaid cards.

Explore
Initially, it was a relationship built upon a traditional logistics support role for Canada. But in meeting with our client Blackhawk, we realized that some of the technology we had developed for the travel industry might be applied to develop a stock and replenish system that meets strict criteria for product fulfillment throughout North America. They enthusiastically embraced the concept... and asked us to deliver the complete system in two months.

Inspire
Through several brainstorming sessions, Blackhawk and Contac refined requirements, explored how best to meet those requirements, and developed an aggressive plan. By building on the inventory management system Contac had developed for its own needs, the process of creating a new system for Blackhawk would reduce development costs and time, and, most importantly, work off a proven best-practices model. The recommended system would not only allow Blackhawk to manage its inventory more effectively, but also allow stock to be replenished through a direct-to-store, auto-replenishment channel.

Execute
The resulting logistics system is flexible and enables synchronization of inventories between Blackhawk and Contac in real time. To date, it has been rolled out to approximately 6,000 locations, with an expected 15,000 locations to be completed by the end of 2008.

In addition, Contac established appropriate security procedures around storage and management of its products to meet Blackhawk certification requirements. Contac has also been able to deliver several different types of distribution such as bulk, direct-to-store and special kitting projects as the need arises. Flexibility, quality control and Contac's proactive approach to the relationship are the reasons Blackhawk chose Contac for its distribution needs.

As the initial implementation was completed, Charlie Piper, SVP, Operations for Blackhawk remarked: "For me to be able to look back over the last several months (not years, months) and take perspective on what we've been able to accomplish already, it's really quite satisfying and impressive.'"