Situation

 

A fast-growing confectionary company in Japan was in need of more space for its temperature-controlled logistics operation.

 

Challenge

 

The company approached LogiChain Solutions looking for a new 3PL that could provide more space for inbound handling, warehousing, co-packing, and e-commerce and retail fulfillment. They also needed Rene’s assistance to implement more automated operations and a better system integration to cope with their annual growth of over 30%.

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After a lease was signed with a brand new distribution center that the 3PL would operate, the space had to be converted from ambient to temperature controlled before it was functional for the company.

 

Action Steps

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Rene provided the following assistance for the company in selecting a 3PL: identified potential 3PLs, solicited a Request for Proposal (RFP) and evaluated those submitted, provided 3PL selection recommendations, and facilitated in the negotiation of the 3PL contract terms.

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As part of the project, Rene defined a transition, implementation and start-up plan for the company and supported them in the transition and start-up phase.

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Further support was provided in the design of the distribution center so that the client was set up for success in their new space. This was done through supporting the client in the calculation of the space requirement and the design and layout of the distribution center, mapping out the material flow, and defining requirements for cooling, lighting, equipment, co-packing automation, and racking solutions.

 

Results

 

The client’s goals were met as they were able to move into a new temperature-controlled distribution center and partner with a new 3PL in time for peak season. The distribution center and the partnership with the 3PL were successfully designed in a flexible way to cope with the annual growth while at the same time keeping the average operations costs flat.