COST. QUALITY. SPEED. DELIVERY. Today’s consumer products market is facing impending trade protectionism, the rise of digital consumers, omnichannel sales models, tax burdens, labor shortages, and more. Amidst these challenges, consumer product distributors must process large and small volumes with low margins, manage distribution centers, meet tight delivery schedules, and mitigate inventory risks.
For these organizations, advancing supply chain performance and reducing cost are essential to a winning business strategy.
Through solutions like improved inventory planning, material and supplier management, network optimization, and managed transportation, LeanCor’s consumer product clients are meeting their business challenges head-on. They’re reducing costs, increasing margins, and improving customer service levels for sustainable business growth.
"COSMETICS SUPPLY CHAIN PUTS ITS BEST FACE FOWARD"
“Targeting millennials with provocative product and shade names, the brand's unusual and complicated packaging was as much a part of the product as its pigments and textures. The company needed a disciplined product development process with tollgates that were completed steps; you didn't go through the tollgate until certain things were done," Avila explains. "Then, once the approved design was sent to the packaging manufacturer, there would be no more changes. With this problem solved, a global cosmetics manufacturer later acquired the brand."
– LeanCor Sr. Vice President Dan Avila featured in Inbound Logistics, June 2017
How We Help Consumer Products: Case Studies
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Designing a best-in-class end-to-end, global supply chain to provide maximum customer value at the lowest total cost. This project is still resulting in ongoing cost savings of:
- €16M ongoing cost savings
The client, an asset based, customized logistics, warehouse and supply chain solutions provider needed to develop a greenfield 300,000+ square foot facility to serve one of its largest customers in a fast paced, highly competitive business environment. The project resulted in:
- 29% reduction in travel time throughout the new facility
- 12% improvement in total process time (picking and motion)
- An additional 31 labor days available for additional volume and growth
- No stop during the transition from old to new
- Visual representation of the new warehouse, inventory / product flow, and information flow
Due to multiple acquisitions, the customer’s distribution network was overlapping and the number of distribution centers had grown to 64 locations. The more warehouses within the network meant more inventory in the total system, more fixed cost, and less opportunity to consolidate inbound and outbound warehouse shipments. This project resulted in:
- Reduced inventory and inventory costs
- Reduced fleet costs
- Total logistics cost reduced by $1.8M (exceeded goal of $1M)
An outdoor power products manufacturer was planning to open a greenfield facilty to improve its
warehousing capabilties relative to its manufacturing facility. The client expected to see a spike in demand for its products over succeeding years. However, due to most of its products’ seasonality, the client’s facility needed the capacity to suffice inventory levels during ramp up and peak season without becoming vacant during slower months. The project resulted in:
- $2 MIllion reduction in inventory carrying costs
- $1 Million reduction in transportation costs
- Improved customer on-time delivery
A Supply Chain That Adapts to the Changing Landscape
Since business decisions ultimately manifest in the supply chain, we help you see your supply chain as a feedback mechanism - an abundance of critical information needed to improve business performance, increase customer value, and eliminate waste. Solutions include:
• Lean Transformations (Enterprise-Wide and Functional Areas)
• People Development: Training and Education
• Performance/Cost Assessments
• Outbound Transportation Optimization
• Outsourced Transportation Management + ™
• Inventory Flow and Right-Sizing
• Network Strategy and Design
• Distribution Center Design, Operations Improvement
Typical Client Results