Success Story - "Transportation and Distribution"
A World Leader in Nutritional Solutions and Additives for Animal Feed
Company Situation and Problem
- Client had initially set up a mid-west distribution center to handle shipments to customers that existed at that time.
- Client had expanded sales activity to include customers in the Northeast, South and Eastern U.S.
- Products were imported from France and China through several ports and then railed and trucked to the Distribution Center. Transit time from ports was 10 days or more.
- Two Less Than Truckload (LTL) carriers were used for shipments to customers.
Paladin Actions & Recommendations
- Paladin reviewed and mapped the incoming and outgoing shipments and analyzed total current factory to customer costs.
- Paladin modeled incoming and outgoing shipment costs from several East Coast ports and warehousing locations.
- Assembled technical requirements data such as stocking requirements, shipping requirements, and delivery times.
- Paladin recommended and Client selected lowest cost US incoming port and warehousing location option.
- Outbound transportation requirements were consolidated, RFP developed and issued.
- Warehouse requirements were reviewed and simplified, RFP developed and issued.
- All incoming product shipments were directed to a single Southeastern U.S. port.
- A new warehouse was selected near the selected incoming port.
- Outbound transportation volume was consolidated and one outbound transportation carrier was selected.
- Transportation rates were reduced by 15%.
- Port selection allowed 10% heavier incoming container shipments reducing the number of incoming containers and costs.
- Transit time from Port to Warehouse was reduced by 8 days allowing faster client invoicing and improving cash flow.
- Reduced transit time reduced number of out-of-stock situations and improved customer satisfaction.
Significant Reduction in Logistics Complexity … Reduced Transit Times by 80% … Reduced Total Distribution Costs by more than 20% … Improved Customer Invoicing and Cash Flow … Increased Customer Satisfaction