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Success Story - "Transportation and Distribution"

Company Description

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.

Client Results

  • 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