Challenge: Independent business units within a Fortune 500 CPG company pursued separate strategies for managing product distribution, resulting in a complex network of packaging and logistics suppliers and rising costs. The company wanted to streamline its supply chain by doing final packaging inside the distribution centers, and shipping the same amount of product from fewer, strategically located sites that carry the company's full line of products.
Solution: KANE operates two of 10 new mega-centers, managing all packaging, order fulfillment and retail delivery requirements. The optimized network eliminated the need for 20 outside packaging companies and the back and forth freight runs to these plants. The size of the network went from 80 to 25 warehouses.
Results: The new network enabled the company to reduce packaging and distribution costs by $56 million, increase one-day deliveries from 60% to 85% of orders, and drastically reduce its carbon footprint through greater freight efficiency.
About the Solution Provider: Kane works with consumer goods manufacturers and their retail customers to get products to market faster, and for less, anywhere in the U.S. KANE provides solutions for labor management, warehousing and distribution, contract packaging, and freight transportation, including temperature-controlled solutions for food products.
Phone: (888) 356-KANE (5263)