CPG Case Study

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OVERVIEW

When the World Health Organization declared COVID-19 a pandemic in March 2020, the CPG company stepped up as a global leader in health and hygiene to help combat the novel coronavirus. With monumental demand for hygiene and cleaning products and over the counter cold and flu remedies, the CPG company turned to Transplace to develop logistics strategies and secure its supply chain.

OPPORTUNITY

In response to the world-wide healthcare crisis, the CPG company increased production and distribution of home, health, and hygiene products. Inevitably, there was a surge in volume for consumer packaged goods (CPG) companies across the supply chain.

The just-in-time (JIT) programs in place at many retailers proved to be inflexible, leading to more rapid shortages. The COVID-19 crisis requires inventory and manufacturing flexibility to serve the marketplace.

Efficient logistics for healthcare and hygiene essentials were further challenged with excessive delays and buildup of freight at docks because of social distancing restrictions for drivers, shippers, and receivers. The addition of health questionnaires, temperature screening, and other preventative measures also caused bottlenecks.
Real-time visibility of logistics and supply chain networks is critical for organizations to make informed business decisions and flex to rapidly changing circumstances.

SOLUTION

With $11 billion of freight-under-management, Transplace has the largest North American network that was an invaluable resource for the CPG company in dealing with COVID-19.

The current inventory demand for hygiene and cleaning product essentials will continue for months. Therefore, it was crucial Transplace worked with the company to put in place a structured approach to handle the volume surge and continuously replenish depleted store shelves.

Transplace’s Transportation Management System (TMS) and Control Tower enabled enhanced visibility for the team to monitor shipments and react to rapid changes in the network. By leveraging Artificial Intelligence (AI) and machine learning, the control tower assisted in managing daily exceptions, and the built-in service risk prediction models identified possible shipment disruptions sooner, allowing shippers to proactively mitigate risks.

During the crisis, the CPG company enhanced its capacity leveraging Transplace Carrier Management. Collaborations between the company and Transplace allowed access to a wide net of carriers and optimization opportunities through Transplace Network Services (TNS) to create additional capacity and mitigate costs.

The TransMATCH program facilitated cross-client collaboration increasing delivery frequency to targeted customers without raising costs. TransMATCH is an asset based solution which provides greater efficiencies for less-than-truckload (LTL) and truckload (TL) shipments through improvements in utilization and optimization to lower cost and improve service performance.

Results

Partnering with Transplace has provided remarkable reliability for the CPG companies logistics and supply chain operations – even during unpredictable circumstances due to the COVID-19 crisis.

OPERATIONAL EXCELLENCE

When the CPG company increased production and distribution of home, health, and hygiene products, volume increased 17% in March 2020 for the shipper. Transplace immediately addressed the volume surge by accessing its expansive North American capacity network and providing the ability to flex capacity which enahanced supply chain efficiencies for the company. Transplace also responded by providing seamless contingency backup operations with after-hours staff support, seven days a week.

CONFIDENCE AND PEACE OF MIND

The CPG company gained insight and intelligence from Transplace’s vast network – including daily and weekly visibility of market conditions – to facilitate critical logistics decisions, while lowering costs and risk.

Transplace’s CPG expertise provided additional insight into best practices and data to assist in the CPG companies transportation-related strategies.