When we discuss the logistics challenges of consumer goods and grocery products, the focus tends to be on outbound distribution to retailers and how to provide on-demand replenishment to retailers, while keeping inventory under control.
Far too little attention is focused on supply logistics for these same consumer goods manufacturers. But there are big dollar savings to be found by optimizing the movement and management of raw materials to production facilities.
Productivity Through Partnership
The organization of your manufacturing logistics operation can have an important impact on production output. Many manufacturers have turned to outsourcing selective elements of supply logistics. Certain activities can be performed by a third-party logistics company (3PL) much more efficiently, and at less cost, than you can achieve in-house. Some of these straightforward tasks include:
- Receiving inbounds and discarding the packaging (detrashing)
- Managing the raw material warehouse
- Managing packaging supplies
- Running the facility storeroom
- Shuttling inbound materials to the manufacturing line
A 3PL organization will often have its own local facility at which to perform these tasks, freeing up space in your factory to expand production.
Benefits of a Manufacturing Logistics Partner
- Maximize production space
- Increase production efficiency by receiving materials only when needed and in ready condition
- Postpone inventory ownership and improve cash flow through vendor managed inventory programs
- Reduce labor costs for a non-core function
3PLs often establish operations directly within the factory, as is the case with Kane Is Able’s support for Procter & Gamble manufacturing.
Depending on your industry niche, output constraints might also exist in the form of erratic raw material availability. This could result in a catastrophic line-down situation. To reduce your risk, a supply logistics partner can hold raw materials in its own warehouse, working with your suppliers to ensure you always have adequate supply levels in place.
Kane Is Able to Solve Your Manufacturing Logistics Challenge
Here at Kane is Able, we focus on making retail supply chains more efficient, so our services span the entire supply chain, including supply logistics. If you’re looking at options to improve costs and throughput at your production facility, contact us and see if our services fit your needs.