Reducing Supply Chain Costs through Distribution Network Assessment

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Published March 16, 2017

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Despite expansion and growth, a provider of full-service component meal systems was facing uncertain future sales. The company was seeking to assess its distribution network and reduce overall supply chain costs.

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Company
  • This company is a provider of full-service component meal systems, as well as a variety of component entrees, fruit cups, snacks, and sandwiches that are sold individually to school districts, nursing homes, and homeless shelters across the country.
  • Services include delivery, menu planning, nutritional analysis, equipment, equipment maintenance, training, marketing, and promotions.
Challenge
  • Company was growing and expanding through acquisitions and increased sales, but was unclear about future sales due to government contract bids.
  • With recent growth and a questionable future income, the company needed to address network issues and reduce expenses by realigning its supply chain and decreasing overall supply chain costs.
Tompkins International’s Role
  • Developed a network assessment for the current manufacturing and distribution location to provide the best transportation and routing methods for moving manufactured goods from production to warehouses and third-party logistics (3PL) partners at the lowest cost.
  • Identified the lowest cost delivery method and recommended a plan to purchase and implement a robust package that would optimize daily routing.
  • Recommendations included reducing the company’s internal fleet of delivery trucks and lowering overall delivery miles.
The Results
  • With these changes, the company will reduce distribution labor, increase warehouse efficiency, and boost operational savings-creating a positive impact on the bottom line.
  • The savings will allow the company to continue to be very competitive when bidding on additional meal delivery services and lead to a higher level of profitability. Additionally, its customers will continue to receive quality products on time.
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