Intermodal v. boxcar
An operations manager’s win
Our friend Jerry is the operations manager at a large beverage distribution company. He was frustrated and unsure of his department’s efficiency when we met. You see, the logistics behind the wine and spirits industry is nothing to sneeze at. Jerry was jumping through hoops (picture the kind with fire) to keep the beverages flowing, and to be honest, he didn’t know how long he could keep it up.
All boxed in
Cash flow and inventory management. Those were Jerry’s biggest concerns. He was using a boxcar process that made Einstein’s Theory of Relativity seem like child’s play. Product was coming in from multiple suppliers, to be placed into a single boxcar, then being warehoused and loaded onto four different trucks for distribution. That’s a lot of loading and unloading — which meant a lot of unnecessary risk.
It also meant the challenge of ordering enough from suppliers to get that boxcar full, but not ordering so much that you can’t sell it, and Jerry’s company couldn’t sell that extra product. So, they did not meet this efficiency challenge and the costs were adding up.
That wasn’t the only expense. Low visibility of the supply chain and having to use a crystal ball to predict what might need to be ordered in 45 days meant Jerry’s availability was limited. His time was spent manually checking into the moving parts of the company’s sensitive supply chain. He couldn’t risk an unforeseen missed delivery appointment that could blow timelines. Both Jerry and his team were putting in unbudgeted overtime just to keep up.
Jerry knew if he didn’t get things on track fast, he and his team would burn out.
A helping hand
While Jerry was seeking solutions, he met Adam with Agforce. Jerry knew he wanted to partner with a company built on honesty that he could trust and, above all, they would meet his expectations (effectively lowering his stress level).
Before Jerry ever talked about his burdened supply chain, Adam asked him about what he found important. Jerry was tickled with the direct and forthright communication as their relationship developed. Confidence grew in Adam and the Agforce team. Commitment to truly serve him as a client was apparent in the knowledge Adam shared and interest he showed in Jerry’s personal success.
The partnership and the plan
Once Jerry and Adam finished their initial discovery, the Agforce team went to work designing a plan to simplify processes for Jerry. He was asking for the ability to feel good about the decisions he made so he could dive into other operational areas in need of attention.
To get him that level of confidence, we encouraged him to consider intermodal. With Jerry’s boxcar experience, it did not take long for him to be comfortable with the idea. The Agforce team proposed a new intermodal process that eliminated the need to fill an entire boxcar and nixed a warehouse stop. The plan also included broader cost savings than transportation alone. It would eliminate the need for excess inventory, in turn boosting cash flow and reducing the need to pay interest to the bank on net 30 terms.
Jerry took the proposed solution back to his team. With all stakeholders on board, he set to work with Adam to get the plan underway. He was pleased to find his new partners steadfast and true to their word. Implementation was an organized, smooth transition with world-class customer service supporting him through the entire process.
He was no longer frustrated and enjoyed compliments for seeking out a solution with a solid transport service.
The partnership between Jerry and Adam and the Agforce team freed up Jerry’s time:
- Provided better visibility to freight
- Allowed some inventory flexibility
- Sured up capacity
- Decreased lead time for ordering
- Decreased transit time
It also eliminated long lead times and long transits. In time cash flow improved. The company’s overtime payout, to Jerry’s now incredibly efficient team, became almost non-existent. Jerry had saved his company’s bottom line and most days now resembled a walk in the park.
The Agforce team also celebrated the way they worked together. They had saved Jerry’s sanity, and did it in a manner that reminded them they work with the smartest people in the industry. Adam sure knows that without those hard working experts by his side every day, his friendship with Jerry may have faltered.
Curious where your company could you find efficiencies? Let’s partner and create your business’s solution. Give us a call at 877.367.2324 or email us at firstname.lastname@example.org.
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