Success Story - "Transportation and
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|– 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
South and Eastern U.S.
– Products were imported from France and China through several ports
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
Actions & Recommendations
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
– Warehouse requirements were reviewed and simplified, RFP developed
||– 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
the number of incoming containers and costs.
– Transit time from Port to Warehouse was reduced by 8 days allowing
client invoicing and improving cash flow.
– Reduced transit time reduced number of out-of-stock situations and
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