Securing Unmatched Private Equity Solutions

Securing Unmatched Private Equity Solutions

A private equity firm engaged Hub Group to evaluate its supply chain network and improve operational efficiencies for one of its prominent CPG companies. Hub Group delivered an end-to-end solution.

The Challenge

Managing a supply chain can be complex, especially when it’s for a carveout company that’s now operating as a standalone. With a seemingly endless number of networks to account for, a consumer-focused private equity firm engaged Hub Group to evaluate its end-to-end supply chain network and improve operational efficiencies for one of its prominent CPG companies.

The CPG company had a well-established brand with its end consumers. Yet, with its continued growth and complex cross-border and retail customer guidelines, the company needed a more sophisticated supply chain solution.

Navigating each product’s point of origin with multiple incumbents complicated communications with suppliers and customers, plus hampered its ability to govern inventory levels and on-time performance. As a result, the company experienced higher freight expenses, and its lean staff spent more time putting out fires than being strategic.

Hub Group’s supply chain and logistics specialists determined how to achieve greater overall efficiencies and cut costs—by leveraging Hub Group’s retail consolidation solutions.

The Solution

With an extensive network of established carriers, warehouse providers, and deep retailer relationships, enrolling the CPG customer in multiple retail consolidation and food service distribution programs was the way to go.

Hub Group’s end-to-end supply chain solution replaced eight incumbents with a fully streamlined outsourced solution for the customer. This included customs and cross-border support for inbound shipments from Mexico, food-grade warehousing in five regions, outbound services in five retail consolidation programs, and both less-than-truckload and full truckload for all non-consolidation consignees.

Using Hub Group’s customer portal technology, the customer receives 24/7 visibility into inventory levels, order tracking, and all documentation needed to avoid costly retail fines.

The Result

A senior leader at the CPG company said one reason for choosing Hub Group was “because of their ability to go from pick-up to destination with 100% visibility at the SKU level. It’s compelling.”

Hub Group’s extensive network and suite of solutions have driven 8.5% in overall cost savings, a cube maximization of 98% for all inbound shipments, and a 96+% On Time In Full (OTIF) score across all consignees since the program started.

By working with Hub Group, this customer has not only cut costs and improved retail performance, but they are also freed from the day-to-day tasks of managing their supply chain and can now better focus on other aspects of growing their business.

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