Executive Briefings

Kenco Reduces Freight Costs 49% with Postponement Packaging

Challenge: A kitchen and bath manufacturer was experiencing reduced trailer cube capacity due to the large packaging requirements of its product line. The customer wanted to increase cube capacity to reduce freight expenses.

Solution: Kenco worked with its customer to develop a solution that involved kitting semi-finished goods at the warehouse. Previously, the product line was assembled and then shipped to the regional distribution center (RDC). After implementing this new postponement solution, the manufacturer was able to ship the product's components individually, maximizing trailer cube capacity, and thus saving on freight costs from the manufacturing plant to the Kenco-managed RDC. The solution included an adjusted warehouse layout to accommodate the new postponement assembly and training on the new kitting process.

Results: The implementation of this postponement packaging solution resulted in an overall inbound freight savings of 49.38%.

About the Solution Provider: Kenco provides integrated logistics solutions that include distribution and fulfillment, comprehensive transportation management, material handling services, real estate management, and information technology—all engineered for Operational Excellence. Woman-owned and financially strong, Kenco has built lasting customer relationships for more than 60 years. Kenco’s focus is on common sense solutions that drive uncommon value.

Web: www.kencogroup.com

Email: info@kencogroup.com

Phone: 800-758-3289

Solution: Kenco worked with its customer to develop a solution that involved kitting semi-finished goods at the warehouse. Previously, the product line was assembled and then shipped to the regional distribution center (RDC). After implementing this new postponement solution, the manufacturer was able to ship the product's components individually, maximizing trailer cube capacity, and thus saving on freight costs from the manufacturing plant to the Kenco-managed RDC. The solution included an adjusted warehouse layout to accommodate the new postponement assembly and training on the new kitting process.

Results: The implementation of this postponement packaging solution resulted in an overall inbound freight savings of 49.38%.

About the Solution Provider: Kenco provides integrated logistics solutions that include distribution and fulfillment, comprehensive transportation management, material handling services, real estate management, and information technology—all engineered for Operational Excellence. Woman-owned and financially strong, Kenco has built lasting customer relationships for more than 60 years. Kenco’s focus is on common sense solutions that drive uncommon value.

Web: www.kencogroup.com

Email: info@kencogroup.com

Phone: 800-758-3289