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.