The Challenge
When managing shipments in and out of a high-volume, 24/7 production facility, room for error on both the shipping and receiving ends is razor-thin. Because production is multi-faceted, a delay of inbound raw materials arriving at the facility can snowball into a myriad of problems—the product is not ready on time at the shipper, undesirable loading times or long wait times cause driver frustration, delayed loading results in drivers having to take a break halfway through transit to comply with Hours of Service laws, production lines shutdown, outbound shipments are stalled, and customer deliveries get missed. All of this can lead to major losses for the manufacturer, especially during surge season when the market is already volatile, space is limited on shipping docs, and pre-scheduled transit windows are tight.
The Manufacturer, one of the largest producers of bottled beverages in the world, reached out to Capstone Logistics when they faced frequent shutdowns of one of their largest U.S. plants due to unreliable carriers that were unable to deliver empty bottles from their supplier on time. Each shutdown of this magnitude drastically reduced worker productivity, resulting in thousands of dollars lost—not to mention the added costs of dealing with tight capacity, high seasonal spot pricing, undesirable loading times, negative press, and missed customer deliveries. Because these production-line bottles were coming out ofGeorgia during peak produce season—one of the tightest capacity markets three to four months out of the year—the problem was compounded even further. TheManufacturer needed a service provider that could quickly understand and diagnose problem areas, and provide reliable transportation solutions to keep their freight moving and customers satisfied.
The Solution
Understanding what was at risk, Capstone provided JIT logistics solutions to get inbound shipments from the supplier to the Manufacturer as soon as they were needed so that production could continue and output volumes would remain steady. On top of that, they kept transportation costs down by contracting the Manufacturer’s freight to a reliable carrier network. This guaranteed capacity at a fixed price, regardless of volume, and gave theManufacturer added flexibility and stability when transit timeframes were tight
Partner Profile:
Multinational food, snack, and beverage corporation with net revenues of over $60 billion.
Project Snapshot:
Capstone Logistics implemented just-in-time(JIT) logistics solutions to ensure zero disruptions to the Manufacturer’s production schedule during their peak shipping season.
Recognized as a Food Logistics Top 100 3PL four times since 2013, we understand the importance of FDA compliance, food-grade trailers, constant visibility, and the costly nature of unreliable service.
Capstone implemented the following JIT solutions to ensure zero disruptions to the Manufacturer’s production schedule:
- Flexible Capacity. The carriers in the Capstone network are incredibly agile and highly collaborative when product readiness is uncertain or schedules are unpredictable. Because Capstone proactively communicated expectations and issues, their carriers agreed to large pickup and delivery windows for added flexibility.
- Strict Carrier Expectations. In addition to their standard carrier compliance protocol, which involves rigorous score-carding for the utmost reliability, Capstone matched the Manufacturer’s freight to the carrier with the most optimal profile for each shipment. This ensured a high level of execution regardless of time and date.
- Continuous Communication. Capstone acted as the transportation “control tower,” facilitating communication between shipping points, carriers, and customers. In the event of a load failure, they notified the Manufacturer prior to pick-up and provided hourly updates throughout the recovery process, followed by hourly updates from pick-up to delivery. Geo-tracking technology automatically sent location updates to the Manufacturer’s after-hours team, enabling continuous, 24/7 communication and visibility.
- Team Drivers. Team drivers kept the Manufacturer’s freight moving past daily HOS driving limits. Because stops were minimized, teams were able reach air freight speeds at a fraction of the cost.
- A Rock-Solid Contingency Plan. Capstone created deep routing guides to guarantee reliable backup carriers were in place as needed. This entailed having up to five carriers per lane as part of a solid waterfall solution.
The Results
Capstone helped the Manufacturer avoid shutting down their production facility, which saved a considerable amount of money and kept retail and distributor shelves stocked during one of their busiest seasons of the year. They were able to achieve 99% on-time delivery through constant communication and real-time visibility.
In addition, because Capstone took on all transportation responsibilities—including carrier selection, communication, exception management, etc.—the Manufacturer was able to keep their employees focused on planning, strategy, and production. The “total delivered cost” was a net positive on the Manufacturer’s bottom line, as avoiding driver reassignments and plant shutdowns eased the resource drain on their workforce and amounted to an additional savings.
Through JIT solutions, Capstone was able to provide the Manufacturer with price stability and reliable coverage when they needed it most.
THE BENEFIT OF HAVING BROKERS IN YOUR NETWORK
A well-matched broker or 3PL can add tremendous value to your supply chain by filling gaps in your asset-based network. Advantages include:
- Agility when dealing with last-minute changes
- Regional or niche areas of focus
- Proficiency in the right solutions you need
- Scalable capacity
Unrivaled Transportation and Brokerage
It starts with a commitment to you. Show us your freight management problems, and we’ll show you tangible solutions.
