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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

 

 


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