Executive Briefings

Distribution network re-org yields $2 million in savings in Year 1

Challenge: A food supplement manufacturer was expanding rapidly. They struggled to keep up with order fulfillment, and shipping costs were growing faster than revenue.

Solution: We identified the facility locations (far from carriers & railway) and a dependence on shipping brokers as key cost drivers. We modeled geographic distribution strategies with a TMS, and advised them to open several new Distribution Centers, strategically located in a logistical hub with multiple carriers and a railway.

Results: With DCs sited more strategically to realize savings from multimodal, and staff trained to use TMS software for ongoing optimization, the client was able to use lowest cost carriers and negotiate multi-year contracts. They could also minimize their LTL transactions by implementing Pool Points and cross-docking, saving fuel and giving better service at their retail endpoints. Our client realized over $2 million in savings in year one and had a distribution network designed for their next period of growth.

About the Solution Provider: Supply Chain Coach achieves significant cost reductions and improved efficiencies for your supply chain. Whether you currently work with a 3PL or manage your supply chain in-house, we can provide the strategic level guidance, TMS implementation and optimization. We also advise and implement warehouse software, pick system and design/build.

Web: www.supplychaincoach.com

Email: info@supplychaincoach.com

Phone: (925) 833-1955

Solution: We identified the facility locations (far from carriers & railway) and a dependence on shipping brokers as key cost drivers. We modeled geographic distribution strategies with a TMS, and advised them to open several new Distribution Centers, strategically located in a logistical hub with multiple carriers and a railway.

Results: With DCs sited more strategically to realize savings from multimodal, and staff trained to use TMS software for ongoing optimization, the client was able to use lowest cost carriers and negotiate multi-year contracts. They could also minimize their LTL transactions by implementing Pool Points and cross-docking, saving fuel and giving better service at their retail endpoints. Our client realized over $2 million in savings in year one and had a distribution network designed for their next period of growth.

About the Solution Provider: Supply Chain Coach achieves significant cost reductions and improved efficiencies for your supply chain. Whether you currently work with a 3PL or manage your supply chain in-house, we can provide the strategic level guidance, TMS implementation and optimization. We also advise and implement warehouse software, pick system and design/build.

Web: www.supplychaincoach.com

Email: info@supplychaincoach.com

Phone: (925) 833-1955