Creating a Winning Team

With an eye to the bottom line, operational partnerships between 3PLs and their food customers are more comprehensive and innovative than ever.


OTHER WINNING SERVICES

As 3PLs continue to build on their client relationships—acquiring a deeper knowledge of their partners’ businesses—they help discover hidden areas of optimization. Many 3PLs handle sample requests and special kitting orders for their clients’ large retailer customers. Here are a few other initiatives:

Charge-backs: Kane Is Able has assisted in reducing charge-backs and other penalties that its customer, The Topps Co., had been facing. “They told us they were getting a lot of charge-backs because more of their customers were requiring ASNs and some retailers were charging penalties if the notices were not sent at the time of shipment,” says Chris Kane, the company’s vice president of sales and marketing.

In-store displays: Third-party logistics companies help their clients’ sales and marketing initiatives. For example, 3PLs can manage a number of special promotional projects, including marketing efforts such as building in-store displays and special packaging arrangements like rainbow packs and club-store packages.

Seasonal displays: Food manufacturers can reap significant savings by using their 3PLs to handle some functions traditionally managed by co-packers. DSC Logistics builds special modular pallets for Pinnacle’s seasonal displays.

“For example, for holidays like Valentine’s Day and Christmas they might want us to build special pallets with tailored cake flavors and frostings,” explains Joey Davidson, director of business development for DSC Logistics. “We can provide these end displays for retailers, which drives additional sales for Pinnacle.”

Sharing transportation: Philadelphia Cheese Steak realized that competitors can be friendly. For example, a few other companies in the Philadelphia region manufacture similar products.

“Although we compete on the shelf, we realized that if we collaborate our shipments so together we can ship a full truckload to [various locations nationwide], we can all get better rates,” reports Jim Trivelis, president of Philadelphia Cheese Steak.

“Our objective at Philadelphia Cheese Steak is to have our products delivered throughout the country at least once a week at a lower transportation cost. RLS can match up our shipments with others going to the same place.”

He adds that RLS has become an integral and vital part of the company’s supply chain management operations. –A.T.

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