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KMG Chemicals Hires a 3PL: A Case Study

Ernie Kremling, vice president of operations with KMG Chemicals Inc., relates the story of how the company selected a 3PL, and what kind of issues it was out to solve in the process. He is joined by Frank McGuigan, president of transportation management with Transplace.

KMG Chemicals Hires a 3PL: A Case Study

KMG Chemicals had grown through acquisition. In looking for a third-party logistics provider to manage its combined operation, it stressed three traits: cultural fit, agility and a “can-do” attitude, says Kremling.

KMG met up with Transplace at an industry conference, where the two spoke about the shipper’s growth and acquisition strategy, and how it might optimize its complex logistics program. “We thought that was a business fit,” says McGuigan. “We sat down, talked about their business, and how we could work with them.”

Implementation of a logistics outsourcing relationship is never achieved without hitches, but the hiring of Transplace by KMG went relatively smoothly. McGuigan says the 3PL needed to understand where to begin. “Given the disparate nature of their growth pattern,” he says, “we had to start with one business and roll into another.”

The hiring of Transplace revealed numerous opportunities to optimize KMG’s transportation network. Kremling says the 3PL was able to provide help in numerous areas, stressing continuous improvement. “Transplace brought to the table not home runs, but a bunch of singles,” he says.

Today, says Kremling, KMG has greater visibility to data and goods across its supply chain. He believes the partnership with Transplace was a key element in that success.

When it comes to working with underlying carriers, both parties get involved. “We’ve brought players to the table, and added players through our relationship with Transplace,” says Kremling. “It’s really a collaborative effort.”

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