Retail Optimization Through a Revamped Network

Retail Optimization Through a Revamped Network

With its customer base and volumes surging, a CPG company turned to Hub Group for a dynamic solution that streamlined its handling process, increased service levels, and reduced chargebacks.

The Challenge

A fragmented transportation network can have weighing effects on a supply chain as multiple touchpoints increase the possibility of freight being mishandled and products becoming damaged. Such issues loomed over a premium CPG brand as its misaligned network pressed numerous Over, Short and Damaged (OS&D) claims from retailers.

With an expanding customer base and recent surge in volume, the company engaged Hub Group to perform a network analysis and construct a dynamic solution to help with these challenges and support expansion. After finding inefficiencies with the picking and outbound transportation process, Hub Group’s dedicated teams sought to optimize the handling of the company’s inventory throughout the entire transportation network.

The Solution

The customer moved to a dual warehouse inventory hold solution with Hub Group to alleviate chargebacks and improve on-time efficiency for its retail business. This solution minimized touchpoints throughout the network, essentially streamlining the handling process while increasing service levels and drastically reducing chargebacks.

Shortly after this implementation, the customer’s inventory volume quickly grew to more than 15,000 pallet locations, significantly higher than the 10,000-12,000 pallet forecast. Hub Group worked through the client’s request to receive more than 6-10 inbound appointments per day, align inbounds on slip sheets versus pallets, and manage an enormous product catalog, as well as implement display build solutions.

As the company’s business has grown, so has collaboration with Hub Group. After seeing the benefits of the inventory hold solution, the company allowed Hub Group to ship pre-paid LTL when experiencing capacity issues. The company received full order visibility and shipment tracking through Hub Group’s 24-hour online freight management portal. Now, with enhanced visibility and a streamlined network, the company entrusts Hub Group to manage its transportation process to additional retailers throughout its network.

With Hub Group, customers receive dynamic solutions within a flexible network, putting their teams in a ready position to support volume surges and business expansion.

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