A farm client had the opportunity to save on raw material costs by purchasing distressed product from a major manufacturer of food-grade items. They had a challenge, however, because they didn’t have a transportation department or expertise in logistics. The cost to have the product delivered by the manufacturer would have negated any savings on the raw material.
Dunavant met with the client, assessed their situation and provided a solid logistics strategy focused on efficiency and cost reduction. Our method of execution included the following measures:
- Developed a complete reverse logistics program involving a major manufacturer and an agricultural company
- Contracted dedicated equipment and capacity at 15 different locations to help with transportation costs
- Dropped trailers at shipping facilities to enable manufacturer to get the distressed product off the dock and stored safely until a full load was transportation-ready
- Provided a single point of contact for all facilities, which helped lessen disposal costs, streamlined internal processes and reduced transportation spending
As a result, the client was able to reduce its raw material spending by using more distressed product to supplement other materials. In addition, Dunavant now moves 2,400 annual loads, delivering 56,000 tons of product yearly for the company that would have otherwise been disposed of in landfills, thus reducing the client's carbon footprint.
Steve Clark(steve.clark [at] dunavant [dot] com)
Vice President, Freight Operations