When consumers can receive online orders the next day, what advantage remains for brick-and-mortar stores? For motorcycle helmet manufacturer LS2, the answer lies in empowering dealers to match that speedy delivery experience. By adopting an on-demand warehousing and shipping model, the company successfully reduced delivery times, enhanced dealer competitiveness, and ultimately strengthened its market position.
The Wake-Up Call
During a business trip to Maine, LS2 Helmets President and CEO Phil Ammendolia realized the traditional warehousing model the company had used for over two decades no longer met the demands of today's fast-paced commerce. While customers consistently praised LS2's product quality, lengthy delivery cycles were driving them away.
LS2 serves physical motorcycle retailers through an extensive nationwide dealer network. These dealers are crucial because the company doesn't sell directly to individual customers, relying instead on wholesalers and distributors. However, with only one warehouse in Illinois, delivery times to both coasts stretched to four or five days.
When customers couldn't find their desired LS2 helmet in stores, they often turned to online purchases if dealers couldn't restock by the following weekend. This realization made Ammendolia understand that even the most competitive pricing and highest quality products couldn't compensate for slow delivery times.
The Solution: On-Demand Warehousing
While competitors operated five to ten warehouses nationwide—requiring significant investment but enabling next-day delivery across the continental U.S.—LS2 needed a more cost-effective approach. The solution was building a broader distribution network to position helmets closer to dealers.
Traditional solutions like purchasing new warehouses or partnering with third-party logistics providers (3PL) proved too restrictive, expensive, and risky. Ammendolia's team sought a scalable, commitment-free platform that could adapt to LS2's expanding brand and evolving customer needs.
Through this partnership, LS2 initially opened a warehouse in Salt Lake City before relocating to Reno for better proximity to its West Coast dealer network. Nevada's strategic location allowed coverage of key markets from Los Angeles to Seattle with one-to-two-day delivery—a 60% improvement over previous four-to-five-day timelines.
From Humble Beginnings to Global Growth
LS2 traces its roots to 1990s China, where founder Arthur Liao started a small helmet manufacturing business with $500 borrowed from his parents. Now headquartered in Barcelona with global operations, the company expanded to North America in 2011, establishing its U.S. base in Aurora.
Since entering the U.S. market, LS2 has achieved consistent annual revenue growth—averaging 65% over the past four years—with early periods seeing nearly triple-digit increases. Ammendolia, who joined in 2012, credits the on-demand warehousing model for complementing LS2's strengths without requiring deep logistics expertise.
The pay-as-you-go arrangement gave LS2 affordable access to an extensive shipping network while leveraging Ware2Go's supply chain insights for data-driven decisions about distribution locations and freight cost optimization.
Empowering Physical Retail
The faster fulfillment model helps motorcycle dealers compete against large online retailers. "Physical retail's value lies in letting customers visit stores, browse, and try helmets," Ammendolia noted. By improving dealers' inventory positions, LS2 ensures they no longer fear customers walking in with smartphones ready to order elsewhere online.
Initially concerned about relinquishing inventory control to a third party, Ammendolia found reassurance in Ware2Go's UPS backing. The provider's logistics experts assisted with warehouse setup and introduced cutting-edge supply chain packaging techniques.
Beyond adopting on-demand warehousing, LS2 transitioned from floor-stacked pallets to warehouse racking while implementing SAP ERP and warehouse management systems. An unexpected benefit emerged: newfound supply chain flexibility and scalability that will soon enable East Coast expansion mirroring its West Coast success.
Strategic Advantages
Ware2Go's location analytics helped LS2 optimize its network, with the Reno move reducing container costs and improving service to western regions. The platform also provided crucial support during technical transitions, with experts helping implement operational changes.
Perhaps most valuable is Ware2Go's shipping cost expertise. "We can constantly compare rates to ensure we're getting the best deals," Ammendolia explained. A dedicated customer service employee manages the portal, deciding shipment origins and timing.
Looking ahead, LS2 plans deeper integration between Ware2Go and its SAP system, while continuing to rely on the provider's location recommendations for future distribution points. When choosing between potential sites like Kansas or Texas, Ware2Go typically presents three to five options with detailed pros and cons for strategic alignment.