Top Five CPG Manufacturer Optimizes Supply Chain, Reduces Transit Times by 80% and Meets Retail Partner SLAs

The Challenge #

Manufacturers face challenges with traditional fixed logistics networks, including long-term contracts and locked rates.

One global CPG manufacturer sought to expand US capacity and optimize distribution to Canadian retail partners. The manufacturer sought to shift slow-moving SKUs while improving its customer delivery promise.

The Solution #

The CPG manufacturer leveraged Flexe Logistics Programs to shift slow-moving SKUs to Flexe nodes, with the option to move SKUs back to an owned facility if consumer demand increased. All without investing in new fixed facilities.

The company rapidly onboarded Flexe Logistics Network warehouse operators. The result: the organization expanded its warehouse capacity across eight nodes—three of which also served as mixing centers.

And, Flexe expanded wholesale distribution to Canada using a test-and-learn approach. Unlike traditional fixed facilities, Flexe offered options to ensure the best and most efficient fit. No long-term leases required. The company selected a distribution center in western Canada to significantly reduce transit times by 80%—from five days to one day.

Results #

With Flexe, the CPG manufacturer optimized its capacity and distribution—without investing significant CapEx on new fixed facilities. In partnership with the manufacturer's Purchasing department, Flexe created a custom playbook to streamline contracting, onboarding and launch of future logistics programs.

The CPG’s Director of Purchasing explained: “I have no other supplier that moves this quickly to provide warehousing and contractual agreements. Flexe is my benchmark.”

Flexe provided adjustable warehouse space in the right locations at the right time—from hazardous materials to rapid replenishment for retail partners. Ultimately, Flexe supported five business divisions nationwide across ten product categories—and reduced transit time to Canadian partners by 80%.

You might also be interested in: #

• Video: Aterian Uses Flexe Logistics Programs to Achieve 97% Two-Day or Less Delivery Speeds

• Webinar: From Disruption to Decision: Delivering ROI Despite Supply Chain Uncertainty

• Article: Boost Supply Chain Cost Savings. Invest in Structural Supply Chain Flexibility