Canadian-Based NRI Distribution Opens Warehouse in Southern Calif.
Inside NRI Distribution’s new warehouse in Compton, Calif., no space is wasted.
The aisles on the main floor are narrower to maximize storage of compact shoeboxes, and the extra upper level above the shipping dock will be used for lightweight items, such as sunglasses. Peter McKenna, co-owner of NRI Distribution, said it’s a bigger investment upfront to install the custom racking and fixtures, electrical systems, and conveying equipment, but it will make for a smoother and more efficient workflow in the long run.
“This area is really built out for footwear and accessories, like bags. This area will be very specific to apparel,” McKenna said as he pointed out the different sections of the 65,000-square-foot warehouse. “We create a lot more density in the facility, [which] means, from a cost and efficiency standpoint, we’re able to be more competitive.”
NRI Distribution opened the doors to its Los Angeles warehouse in January. The company has 17 years of experience as a third-party logistics distributor (3PL) in Canada specializing in the action-sports lifestyle and outdoor markets.
In Canada, NRI distributes Quiksilver, DC shoes, Volcom, Electric sunglasses, Oakley, 686, Globe shoes, Toms shoes, Sitka and Herschel Supply Co. out of three facilities in British Columbia that add up to about 330,000 square feet of warehouse space.
McKenna said the timing was finally right to duplicate the company’s Canadian operation in California after requests from its American clients and observing “new ideas and new people moving in the marketplace.”
NRI’s services include turn-key fulfillment, including pick and pack; inventory management; vendor compliance; freight; returns management; EDI; and e-commerce solutions.
Mutual growth
NRI USA LLC is a joint venture with Los Angeles–based Westlife Distribution LLC. Michael Akira West, owner of Westlife Distribution, has used NRI for the Canadian distribution of his Los Angeles–based snowboard apparel brand, 686, for more than a decade.
“We have always had respect for their ability to efficiently ship our product, but what I like most about Peter [McKenna] is his commitment to this industry and not taking things too seriously,” West said.
“Shipping correctly is one of the most important things a company can do. A growing company works so hard to design, market and sell products, that sometimes it’s better to leave the shipping and logistics up to the professionals. [NRI USA has] a proprietary warehouse-management system [WMS] that backbones our entire operation, and there are very few 3PLs that have a system and experience that could compete.”
With nearly 20 years of knowledge and working in the niche market of outdoor and action-sports brands in Canada, McKenna plans for the American arm of the company to focus on building small- to medium-sized brands in the United States. McKenna said educating younger and newer brands demands more time and attention, but “you pick the right brands and the upside is huge.”
Ryan Dale-Johnson, senior sales and marketing manager for NRI, said choosing brands and relationships that had similar business and social “values” was more rewarding.
“We get a lot of personal joy out of working with brands with similar values, as well as creating value for our clients—not just being a cog in the wheel but rather a key in their success,” Dale-Johnson said.
The current roster for the Los Angeles warehouse includes Canadian brands Herschel Supply Co. and Sitka (both of which NRI also distributes in Canada); Carlsbad, Calif.–based Osiris skate shoes; Sombrio from Vancouver; and Alabama-based Shred Ready helmets.
“When we started in Canada, it was 17 years ago, and a lot of the California youth-oriented brands were very small, and they didn’t have a lot of penetration in Canada. We got really good at handling small accounts, small vendors. Our model really supports that,” McKenna said.
For more than 12 years, Osiris has been using third-party logistics providers for its domestic business. Osiris Vice President Doug Weston said NRI’s operations and customer service lived up to expectations. “Their proprietary information system looks very robust, and [the NRI team has] gone out of their way to ensure that our transition will be smooth and seamless,” Weston said.
One of NRI’s clients in both Canada and the United States, Herschel Supply Co., has rapidly grown in the United States since its first delivery in 2009. Before NRI came stateside, Herschel was handling its own warehousing and distribution in the United States.
“We don’t have a plan to be warehouse experts, and we’re really lucky to have a warehouse expert in our backyard [in Canada] who cares about our business, not just in the fact of shipping boxes. They truly care about what we’re doing and how we’re growing,” said Lyndon Cormak, co-founder of Herschel. “The fact that we don’t have to be responsible for our own growth and we don’t have to be on the phone to real estate agents every other week looking for more space is great. They are set up to grow with us.”
