Inbound Logistics | May 2023


SOLVED Supply Chain Challenge?

3PL Provides Recipe for Distribution and Fulllment Network Efciencies A national baked goods company reduces retail chargebacks and streamlines their distribution center footprint by 30% with ODW Logistics.

THE CHALLENGE A national manufacturer of baking goods and desserts was looking to unify multiple brands under a single supply chain network. The company was struggling with vendor compliance and chargebacks with major food and grocery retailers. In addition, inefcient processes, staging congurations, overow facilities, and case pick challenges were causing issues in their warehouse operations and leading to bloated inventory levels. The company was looking to partner with a 3PL that could design new processes to address their retail compliance challenges, engineer a new solution to address inefciencies in their distribution and fulllment network, and was experienced with food and beverage logistics to recommend supply chain solutions specic to their industry. Here is how ODW Logistics delivered.

volumes. Case pick processes were also streamlined and reengineered to improve replenishment speed of fast- moving SKUs. As a result of improving inventory balance and case pick processes, the baked goods company improved storage capacity by 60% and eliminated 300,000 square feet of inefcient overow space in their network.

requirements and processes for every retailer in the network and provided a template to efciently manage retail compliance measures. Finally, procedure and communication guidelines were implemented for the carrier network. This streamlined communication, improved overall visibility, and standardized pickup and scheduling protocols. As a result of these measures, the company realized a decrease in retail chargebacks of 87% in the rst 12 months. To optimize the distribution and fulllment network, ODW Logistics redesigned racking layout, reorganized storage conguration, and rebalanced inventories to accommodate for order

THE SOLUTION To address vendor compliance

challenges, ODW Logistics completed a comprehensive retail compliance audit with the company to set a baseline for current processes. This audit established a benchmark for issues driving retail chargebacks that included routing guidelines, order submission errors, and mismanaged key performance indicators (KPIs). Next, standard operating procedures were designed that outlined specic

To learn more: 614-549-5000

May 2023 • Inbound Logistics 35

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