Developing Broader, Holistic Solutions

Working with a customer to update a prior network study, CJ Logistics developed a more efficient model. CJ Logistics designed and implemented a plan that reduced distribution centers from 46 to nine, improving transit times and reducing inventory costs.

Customer

Fortune 500 CPG Customer

Details

CJ Logistics collaborates with a paper industry customer to make a distribution network more manageable by reducing and relocating facilities.

Situation

A Fortune 500 paper company’s supply chain network, developed over time through acquisitions, was comprised of 46 warehouses  in close proximity to their customers. In their competitive business environment, it was essential that their transit times to customers be maintained or improved. They asked CJ Logistics to update a prior network study to determine if it was the optimal solution.

Solution

CJ Logistics evaluated the prior network study and suggested a new model. Our solution made the customer’s network more manageable with fewer distribution centers (from 46 to nine), and reduced distances and transit times. Part of the solution involved folding eight operations into one facility in a new geography.

CJ Logistics was invited to implement a portion of our solution, and we completed these transitions within 30 days. We focused on documenting customer requirements, and ensuring that consistent processes were implemented across the customer’s network. CJ Logistics was subsequently invited to integrate four more sites, three of which required hiring and training new workforces. After making necessary upgrades to the buildings, we were able to draw talent from the existing CJ Logistics network to accelerate the onboarding of the new sites.

Result

CJ Logistics increased the level of service to our customer’s top priority customers by 20%. The average distance from distribution center to customer improved from 537 to 367 miles, improving transit time by a full day in many instances. Streamlining the customer’s network resulted in consistency of processes and systems across the sites, which improved productivity and service. Notable for a transition of this size and pace, the customer’s service to its customers remained undisrupted throughout the implementation period.

Thank you for your level of commitment in closing the fiscal year these past weeks. This has been the first month where our group was able to close the month on time and with zero issues. We hope to continue this trend and look forward to having the same level of success this upcoming month end.

Food Processing Customer

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