Value Added Supply Chain Solutions For A Worldwide Beverage Company
Challenge
In 1999, this globally recognized U.S. brewing company realized it was spending too much money on loading direct and required greater support on special projects and promotional campaigns. The company also wanted to enhanced its security to protect its tightly controlled product and a flexible staffing solution. This company turned to OHL and we provided them with savings on direct loading and their desired value added services.
Approach
In the brewing market, time to market greatly impacts product quality. OHL addressed this challenge by offering a strategically placed distribution center. The relationship continued with a packaging solution for a unique assortment of products for a promotion. The distribution center consolidated the various components into promotional packaging, palletizing the product and distributing it to retailers.
Value
Value added services for special projects and promotional campaigns can make the business cycle look seasonal with peaks and valleys in resource and space demands. Since OHL can flex in space and people, this customer saw no interruption in service levels and ultimately realized savings in return.
Over the years the relationship has grown and OHL now operates over 185,000 ft2 of value added distribution center space for this beverage company.
Return on Investment
Our customers’ business values become our values. We recognize the impact of cost savings measures for both our customers and their clients and focus on continuous process improvement. With this priority, we manage our KPIs, goal setting and performance management.
For this beverage company, the percentage of their direct load shipments increased from 58% to 75% with a cost savings in labor and transportation due to a reduction in freight handling claims. In addition, 97.9% of packages shipped from our facility are 18 days or fresher, compared to an industry average of 92.9%. This translates into increased customer satisfaction and overall savings for this customer and their clients.