Meeting Your Retailer's Expectations
A leading CPG company uses Hub Group's consolidation expertise to eliminate cost and improve service.
Following their sale to a private equity company, a leading CPG company was left to manage a misaligned warehouse network, which was accumulating chronic LTL challenges. With important relationships with top big-box retailers, their 54% on-time performance record was causing strain in the face of ever-increasing retailer performance expectations.
54% was just the on-time performance of shipments that made it to the retailers—with the high-touch, volatile nature of LTL, this CPG manufacturer's shipments were experiencing insurmountable damages and chargebacks, keeping valuable product off the shelf. A need for a change in supply chain strategy became apparent as rampant retailer non-compliance issues and quickly growing chargebacks were eating away at margins.
Approaching CaseStack, a Hub Group Company and leading warehouse & consolidation provider, the customer requested a plan that put them back in control of their LTL network, which was delivering anything but results. CaseStack conducted the analysis of their network and determined that a streamlined consolidation approach with a single warehouse would provide the best results.
The piloted consolidation solution with a top big-box retailer known for high-performance standards yielded immediate results, leading the manufacturer to quickly expand the solution to their three other largest customers.
This change transformed a 54% on-time performance figure into a 95%+ performance rating, bringing their product to market faster and more reliably. The savings were monumental too, driving chargebacks down 70% and dramatically reducing claims.
Through CaseStack's solutions, the customer regained the confidence of the top retailers across North America and experienced a 99.6% fill rate across all four consolidation programs executed by CaseStack—putting them back in control of a streamlined supply chain.