Manufacturing, Distribution and Trade Success Story

Optimizing a Distribution Network for a National Grocer

Business Situation

• The client is a Fundraising Food Cooperative that generates over 300 million dollars in annual sales, serving 21 states in the Eastern United States.
• The client believed that considerable opportunity for savings existed within its transportation network. They based this determination on an inability to get a consistent backhaul for company owned trucks, a disparity in costs per mile, and the need for comparative benchmarks and best practice information.

Key Issues

• The Revere Group dedicated a senior logistics resource to assessing those requirements relative to existing service and cost profiles. These profiles led to the creation of detailed traffic lane matrices suitable for market bid. 
• The Revere Group crafted a request for quote document to be distributed to select 3rd Party Logistics providers and trucking companies.
• The recommended solution included formally bidding out the business to two to three core truckload carriers, realigning the transportation lanes to reduce net transportation expense, and retaining a tractor in the private fleet for local shuttle at the primary distribution hub.

Outcomes

• The Revere Group successfully completed a detailed transportation review and a confidential blind bid to eight service providers. 
• The client received a specific project plan designed to realize the $300,000 opportunity, templates and details to execute the recommended solution, complete contact information for potential carriers, and an extensive list of recommendations to further optimize their distribution network.