Canned Goods Company (CGC) had a long term partnership with an importing company of canned products to sell their Grocery items into the US Market. After 10 years of working with this importer and stagnating in their sales for the last 3 years, CGS determined that they could sell more products if they implemented their own sales team and network. They terminated the importer partnership and went on their own. After doing so, they were left with the daunting task of fulfilling all the orders coming from their long-time customers that demanded products on a regular basis throughout the US, while setting up their direct service and distribution.
After leaving their importer, CGC had over 80 customers (distributors and/or retailers) across the US that needed to be served the next day. They needed to make sure their inventories and transportation services were all properly set up. Consolidation programs were created to deliver LTL in competitive ways and were absolutely vital to the operations’ success. CGC had to provide a better response for their customers in order to show a change in their sales strategy. They also required full control and tracing capabilities, as well as the ability to recall their product coming into the US.
Source Logistics ran a complete analysis of their current customer order behavior and determined the right mix of inventories to have in key Source Logistics locations. They matched these order volumes with other Source Logsitics customers and created consolidation shipment processes to deliver on-time and efficient orders to all CGC customers.
During the collaboration process, Source Logistics created KPI’s specific to CGC to measure every variable that could be improved in the Supply Chain.
Partnering with Source Logistics for supply chain management allowed CGC to focus on their main business, which was product development and sales. This partnership has allowed CGC to maintain a sustained growth of 35% over the last 6 years. CGC also improved product rotation and enhanced their service levels to customers, which resulted in reducing order cycles by 2 days.