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Home » KMG Chemicals Hires a 3PL: A Case Study

KMG Chemicals Hires a 3PL: A Case Study

September 4, 2014
SupplyChainBrain

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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Logistics Global Logistics Logistics Outsourcing LTL/Truckload Services Transportation & Distribution Global Trade Management Inventory Planning/ Optimization SC Planning & Optimization Supply Chain Visibility All Warehouse Services Chemicals & Energy
KEYWORDS 3PL All Warehouse Services Chemical Supply Chain Chemicals & Energy Ernie Kremling Frank McGuigan Global Logistics Global Trade Management Inventory Planning/ Optimization KMG Chemicals Inc. Logistics logistics management Logistics Management: Third Party Logistics Logistics Outsourcing logistics services LTL/Truckload Services president of transportation management SC Planning & Optimization supply chain Supply Chain Management Supply Chain Planning Supply Chain Visibility Third Party Logistics Transplace Transportation & Distribution Transportation Management vice president of operations
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