Overview of the Company
Market Strategy and Customer Base as it
Relates to the Supply Chain
How the Supply Chain Fits the Market
Strategy and Customer Base
Inventory Management Strategy
Location of Distribution and Retail
Use of Information Systems to Coordinate
Flows Between Supply Chain Members
How the Transportation is Organized to
Move Material in the Supply Chain
Smoky Mountain Knife Works was founded in the early
1970s, when Kevin Pipes and John Parker started selling
pocketknives at flea markets.
Through the mid 1970's, they worked hard to build
strong relationships with their vendors and customers,
and the business grew quickly.
In 1978, SMKW opened its first Retail Showroom.
Over the years, SMKW has grown by leaps and bounds,
outgrowing two facilities before building its current retail
location in Sevierville, Tennessee.
Over 1.2 million visitors annually
Monthly catalogs are mailed to millions
of mail-order customers
eKnifeWorks.com is the biggest and
best in the industry!
Accounting Art & Marketing
Human Resources MIS
Order Entry Purchasing
These departments assist in publishing and
mailing a full-color catalog monthly, operating a
80,000 square foot Distribution Center, and
running the "World's Largest Knife Showplace."
SMKW’s marketing strategy varies from
Brochures are sent to surrounding states’
welcome centers and local tourist centers.
Local advertising is used through the
newspapers and on the radio.
Events are hosted annually such as
President’s Day Weekend, Zippo Weekend,
and Rep Weekend.
The internet is used to promote events and
sales on a daily basis at www.eknifeworks.com.
Smoky Mountain Network, TV Sales, is based
out of the showroom and uses inventory of
Smoky Mountain Knife Works.
The number one
Step 1: Catalog Department Creates the Catalog
Step 2: Art Department Assists and Makes
Step 3: President Gives Final Approval
Step 4: Art Department sends File Transfer Protocol
over the internet to Dingley Press in Maine
Step 5: Art Department also mails out overnight the
color proofs of the catalog that is sent of a
digital file through File Transfer Protocol
Step 6: SMKW’s MIS Department runs a
mail list query based on customers buying
history and sends it to Dingley Press
through File Transfer Protocol. This list
is presorted as to designated shipping
areas in regions.
Step 7: Dingley Press creates a printing
plate, prints each form, 32 page section,
prints 4 page cover and 2 order forms,
binds the catalog, ink jets the presorted
address list from MIS onto each catalog.
Step 8: Dingley boxes catalogs and
places them onto skids.
Step 9: Skids are loaded onto a 53
footer Dingley truck.
Step 10: Truck takes shipment to
USPS Bulk Mail Center.
Step 11: USPS sorts mail and delivers
catalogs to the customers.
1.2 Million Christmas catalogs in
3.3 Million other catalogs per year.
300,000 catalogs each month
0.5 Million catalogs remain in the
SMKW uses an AS400, mainframe
computer platform, with an OS2
operating system. The program used
is called order power.
In addition, a min/max query was
custom designed by SMKW
In order to maintain inventory, re-
order reports are printed by vendor
Each vendor has a routine day for the
report to print.
In addition, min/max reports are ran
This allows items below the minimum
to show on a report. If numerous
items from one company are low, an
order is then developed.
Distribution Center: 80,000 square foot in
Showroom: 50,000 square foot in
Sevierville, Tennessee with a 28,000
square foot addition in process.
In order to form cost analysis of the
shipping carrier choice, the internet is
Whenever a purchase order is printed, it
will show the proper methods of shipping
for various weights and number of pallets.
Example: If shipments are less then
200 pounds, customers are advised to
In addition, vendor notes are entered
into the AS400 as to the preferred
carriers for their location.
Letters are also sent semi-annually to
each vendor noting his/her preferred
Step 1: Vendor
Step 2: Carrier
Step 3: Warehouse Dock
Step 4: Receiving (Check-in/Verify)
Step 5: Reserve Storage or Pulling
Locations in Bins
Step 1: Order Placed
Step 2: Order Released
Step 3: Order Pullers Pull Merchandise
Step 4: Checkers
Step 5: Packers
Step 6: Manifest
Step 7: Staged and Loaded on Truck
Small Parcels: UPS (USPS at customers
Less then 200 pounds: Small Parcel (UPS,
Over 200 but less then 2,000 pounds:
Less then Truck Load
A cost and efficiency analysis of carriers
was used to determine which carrier was
best for each state.
Then, a map of the US was created and
each state was color coded by carrier
Conway (Predominately out West)
FedEx Freight (Rest of areas not
Service Transport (KY, OH, IN, MI)
Wilson (Typically Southeast)
Pup: 10 pallets
53 footer: over 10 pallets
SMKW receives less than 40 truckloads
The majority of the freight is send LTL.
The shipper contacts the carrier for
shipping unless it is a special order. If this
is the case, negotiations take place with
the company to see who chooses the
carriers and bares the costs.
Amy Barnett, Art & Marketing Vice-
Kevin Pipes, President
Laurella Rochat, Logistics Coordinator
Lauri Tanner, MIS Systems Operator
Matt Turner, Purchasing Vice-President