Norcross, GA (PRWEB) July 07, 2016
Paladin's client, Adisseo, had established a Midwest distribution center to handle shipments to customers located in that geographic region. Products were imported from France and China through several US ports, then railed and trucked to the Distribution Center in Iowa with transit time from ports of 10 days or more. Less Than Truckload (LTL) carriers were used to deliver orders to customers from the warehouse.
When customer locations expanded into the Northeastern, Southern, and Eastern U.S. Adisseo engaged Paladin to review current shipping and distribution costs and determine alternatives for realignment of their distribution network.
As the result of Paladin’s analysis and recommendations, all incoming product shipments were directed to a single Southeastern US port. The consolidated volume reduced ocean shipping costs and complexities and eliminated delays that had been experienced in Northern Ports because of winter weather. The main US warehouse was moved from Des Moines, IA to Savannah, GA near the selected incoming port.
Outbound transportation volume was consolidated to one LTL transportation carrier plus one full truckload carrier and rates were reduced by 15%. Port selection allowed heavier incoming ocean shipments reducing the number of incoming containers by 10%. Transit time from Port to Warehouse was reduced by 8 days for faster delivery, invoicing, and cash flow with the number of customer stock shortages reduced and improved customer satisfaction.
Actual savings exceeded 25% of the prior total warehousing and transportation costs.
Commenting on the transportation savings, Wally Bluhm, Supply Chain Manager said, “Paladin provided guidance and support that helped us to negotiate reduced freight rates with our LTL carrier.”
Doug Winokur, Finance Director, commented that “Paladin was also instrumental in helping us identify the optimal warehouse location based upon cost structure and level of service.”
Don Hoeppner, Executive Partner of Paladin Associates added, “This was a very successful project for our client that has significantly reduced their US Distribution costs while also reducing the total transit time from the factories to their customers.”
Paladin Associates, Inc. is a Strategic Sourcing and Procurement Services company that partners with Clients to reduce the cost of purchased goods and services and increase the effectiveness of Supply Chain organizations.
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