Jason Tucker stated, “The Cengage business has changed quite a bit over the years. Twenty years ago, we were primarily higher education and traditional textbook publisher. As the marketplace has changed, Cengage has moved to a 50/50 split from traditional textbook publishing to offering all kinds of digital solutions, E-books and homework assistants.”
With the Warehouse Optimization Suite technology and support from Lucas, Cengage realized they had become quite good at distribution. In fact, so good that they began attracting 3rd party logistics customers to fill in some of the empty space that was given up to the digital business.
“The distribution team realized that while we have a great distribution facility we need to replace the volume lost to the digital business growth. There has been a lot of time and effort invested in this facility. What we decided to do was to start bringing in 3rd party customers that would use us as a fulfilment partner and allow us to run the same amount of volume we were running previously,” Jason Tucker responds. “As more 3PL customers join, they are easily transitioned into the Lucas system.”
Over the recent years, Cengage has added ten 3PL customers to their US warehouse. Sonny Adkins exclaims, “We have seen a decline in print; but, with help from the 3PL business, we are now a revenue center, not a cost center.” Over the past 20 years, Cengage has built a strong library of print and digital media for education and has successfully transitioned their distribution business into a revenue center.