Sunset Opens New Windows for VEKA
When working to provide its customers with innovative window and door systems along with multiple rail and deck solutions, VEKA Inc. emphasizes quality service, transparency, and accountability. However, a previous logistics partner’s shift to a more automated approach degraded responsiveness and service. VEKA sought a new logistics partner that was similarly committed to service and reliability. It found a match with Sunset Transportation.
The Customer
VEKA Inc., based in Fombell, Pennsylvania, is a leading provider of innovative window, door, fence, deck, and rail solutions, with operations on four continents.
The Provider
Sunset Transportation is a third-party logistics provider and business unit of Armada Sunset Holdings. It offers a variety of transportation and logistics solutions, including advanced TMS solutions and reporting. Sunset operates seven branch offices in the United States and Mexico.
VEKA’s 6,700-plus employees operate in more than 30 countries, producing 1,500-plus window, door, fencing, decking, and railing systems. In business for more than 50 years, VEKA has built a reputation for superior employee engagement and customer satisfaction.
To continue to meet this goal, VEKA North America works with third-party logistics (3PL) providers, partnering with those that offer both leading technology and personalized service.
A previous logistics partner, in an attempt to boost efficiency, shifted to largely automated processes. However, this move ended up disrupting many of VEKA’s operations, including customer service and accounting. VEKA employees often had to spend time and resources tracking down missing trucks, which impacted the company’s ability to maintain strong customer relationships.
“There were problems every day,” recalls Dyan McCall, VEKA’s director of customer supply chain for North America.
In part, these challenges occurred because the partner was unable to provide the same transportation carriers consistently. This is critical, as once carriers become familiar with VEKA’s products—many of which are large and bulky—they learn how to transport them on time and without damaging them.
Picking a Winner
McCall and her colleagues launched a request-for-proposal (RFP) process to identify a logistics partner that could offer the quality service VEKA requires. Key to a winning partner’s suitability would be strong carrier relationships that could improve warehouse deliveries and enable proactive handling of inquiries and claims.
When McCall and her team initiated the RFP, VEKA hadn’t had to evaluate new 3PLs in more than a decade. As they benchmarked potential partners, it became clear that technology, which used to distinguish one logistics provider from another, no longer played such a large role. “They all have the same tech,” McCall notes.
While a logistics provider’s technology remains important, the ease of doing business with a logistics company and its information technology (IT) group is also important. “That’s critical,” McCall says.
A primary reason VEKA chose Sunset was the ability to establish direct contact between the IT heads of the two companies.
VEKA also evaluated potential partners’ cost structures and transparency. Especially as the freight market shifts and rates fluctuate, it’s important that logistics providers share relevant information.
“Dyan McCall managed and led a smart selection process,” says Tracy Meetre, chief commercial officer with Sunset Transportation. She understands the logistics provider space and was an informed buyer, Meetre adds.
Immediate and Future Needs
By partnering with Sunset Transportation, VEKA is able to move quickly as its need for additional warehousing capacity arises.
Throughout the RFP process, VEKA and Sunset discussed issues of immediate concern, as well as those likely to become more significant in the future, Meetre says. For example, knowing that VEKA’s global headquarters are in Germany, the Sunset team outlined its international logistics capabilities.
When the VEKA team visited Sunset’s operations center, members met with Sunset’s director of international business. “We made sure that we talked about all the different capabilities that we have,” Meetre says.
McCall and her colleagues also met with the director of Sunset’s oversized project group. If Sunset eventually moves large machinery for VEKA, they’ll have a solid idea of the requirements from the get-go. Shippers evaluating logistics providers should ensure they’re aligning with a partner that can handle any kind of shipment or logistical need likely to arise as the company evolves, Meetre advises.
For example, during the pandemic, VEKA had to ramp up its warehousing capacity to work around bottlenecks in the supply chains of raw materials, McCall says. However, the company’s 3PL at the time couldn’t support its need for additional capacity.
With Sunset, VEKA is evaluating several warehouse locations. As its need for additional capacity arises, VEKA will be able to move quickly, McCall says.
Direct, one-on-one communication between the VEKA and Sunset IT teams ensures that issues are resolved promptly.
Moreover, the application programming interface (API) integration between VEKA’s SAP system and Sunset’s transportation management system (TMS) enables VEKA to access accurate, timely transportation data directly within its own system. Sunset also sends VEKA alerts when the information changes.
Additionally, VEKA is able to leverage this information to construct reporting dashboards on demand.
Sunset’s presence at industry conferences and in industry publications demonstrates its expertise and connections within the logistics sector. “If Sunset doesn’t have an answer, I know they will know someone who can get me an answer,” McCall says.
Along with its focus on technology and customers, Sunset prioritizes its carrier relationships, Meetre says. Sunset applies a strategic account management approach to these relationships, dedicating resources to these partnerships and striving for continuous improvement. Sunset pays carriers quickly, so they’re able to meet their obligations and keep their equipment up to date.
Sunset also relies on rigid carrier vetting tools. These help verify that a carrier’s operations are solid, that it maintains strong safety ratings, is insured to the appropriate level, and has a record of on-time deliveries.
“We try to cultivate the carrier relationship the same way we do with our customers,” Meetre says. The goal is to help VEKA be the shipper of choice for many carriers, she adds.
Taking it Step by Step
The two companies initially connected in 2022. In mid-2023, they began planning how best to implement their partnership. Working with their IT teams, they created a calendar of each step that would need to occur. The partnership launched early in 2024, in parallel with VEKA’s global implementation of SAP.
The extensive planning and collaboration with IT paid off. Just several weeks after “go live” Sunset was fully operational, Meetre says.
Prior to its partnership with Sunset, VEKA had experienced significant delays in resolving claims with its previous 3PL. Some required legal intervention. Nearly all of these issues have been eliminated.
Given VEKA’s large shipment volumes and the range of modes it uses, a dedicated team that can manage complex transportation issues is critical. The 24/7 operational support team provided by Sunset ensures support is available when needed.
Because the two companies are connected via APIs, VEKA doesn’t have to work with a transportation management tool supplied by its logistics partner to access information. Instead, transportation data resides in VEKA’s ERP system. McCall and her colleagues can pull this data as they need to.
The electronic integration between VEKA and Sunset significantly increased the percentage of no-touch orders, or those that can flow through VEKA’s and Sunset’s system without manual intervention. This accelerates processing and reduces the potential for human error.
Prior to working with Sunset, VEKA often would receive daily calls or emails from customers asking, for instance, where their truck was, McCall says. At times, VEKA hadn’t even been notified that a delivery had missed its deadline. Now, among other information, Sunset provides on-time delivery performance statistics.
And because Sunset is responsible for managing trucks, VEKA no longer has to spend time searching for any that are missing.
“All of the communication that my team had to deal with went away overnight,” McCall says. The need for the VEKA Customer Care Center to get involved in shipping tasks dropped by more than 20%.
Sales Support
VEKA’s partnership with Sunset also benefits areas of the company outside of supply chain and logistics.
Before customer visits, for example, a salesperson can pull a report that tells, among other information, the number of shipments delivered year to date, the on-time percentage, and any issues or claims. With this information at their fingertips, salespeople can prepare for most questions customers might ask.
Sunset also helped VEKA reduce its 2024 year-to-date claims ratio to .000625%, while improving its on-time deliveries to 98.7%.
Sunset’s approach with both carriers and customers is “white glove,” McCall says. “And the focus and dedication they bring is a game changer.”
Casebook Study: Logistics Overhaul Creates A Clear View Ahead
The Challenges
VEKA’s previous logistics partner shifted to largely automated processes, leading to mistakes and delays in shipping, missing trucks, inconsistent communication, and operational inefficiencies.
The Solution
The team at VEKA issued a request for proposal, seeking a new logistics partner. Sunset Transportation earned the nod, based largely on its focus on customer and carrier relationships, transparency, and open communication.
The Results
Among other benefits, VEKA reduced its claims ratio to less than 1%, while boosting on-time deliveries to 98.7%, enhancing customer satisfaction. Most orders move through without manual intervention and VEKA no longer has to dedicate time and resources to searching for missing trucks.
Next Steps
VEKA and Sunset will continue working together to further strengthen customer relationships, boost efficiency, and remain ahead of the market’s changing needs. Among other initiatives, they’ll work to enhance the shipping process for VEKA suppliers.