04/22/2024
Retail Logistics Case Study: Retail Consolidation
Discover how GEODIS used retail consolidation services to help three suppliers meet strict delivery requirements and deliver on time to major retailers.
Punctuality is crucial in the competitive field of retail logistics. Three distinct retail suppliers were facing a common challenge: Meeting the stringent delivery requirements and delivering on time for a prominent retail chain.
Common issues included:
- Fines for late or missed deliveries
- Complicated scheduling requirements
- Demanding processes for unloading inventory
These problems were more than simple operational hurdles—they impacted our clients' business relationships and financial stability.
Key takeaways
- Big-box retailers have strict requirements for how and when brands and vendors can deliver to their warehouses and stores
- Not meeting these requirements can result in fines and a worsening of the retail relationship
- GEODIS solved these problems using retain consolidation services
- This led to more on-time deliveries, an expanded delivery network, and maximizing growth opportunities
The challenge: Delayed deliveries limit flexibility and opportunities
Our clients were dealing with several constraints that went beyond conventional logistics solutions:
- The retailers they were delivering to were operating smaller stores with lower delivery capacities
- Deliveries were often delayed when they arrived at the retailers' stores
- This caused a ripple effect that impacted efficiency, carrier relationships, and profitability
Waiting too long to unload a truck means limits how responsive a supplier can be. This can lead to lost opportunities and reduces flexibility—which is a major issue in a marketplace that relies on responsiveness. Some of these issues included:
- Fines for late or missed deliveries: Penalties were affecting the bottom line
- Challenges with limited delivery slots and schedules: Complex scheduling hindered efficiency
- Extended wait times for unloads: Trucks needed to wait several hours to unload, resulting in wasted time
For our suppliers, these problems had compounded together. They needed an innovative solution to remove issues and improve the business relationship with the retailer.
The solution: Joint collaboration and consolidation that works for everyone
Our solution needed to go further than simply dealing with scheduling and coordination challenges, which are often the symptoms of an underlying problem. We worked with our clients to understand the root causes of their issues. We then created a tailored approach that solved the problems and strengthened relationships between clients and retailers.
We based our solution on our Retail Consolidation Services (RCS). RCS allows us to combine multiple less-than-truckloads (LTLs) into a full-truckload (FTL) to make it faster and easier to ship products to retailers.
RCS provided several benefits to our clients and the retailer:
- Specialized, pooled unloading approach: We created a detailed unloading approach, fully customized and aligned with our clients' and the retailer's needs. Pooling loads reduced wait times and improved efficiencies.
- Direct collaboration with the retailer: We developed relationships between GEODIS, our clients, and the retailer to understand delays, bottlenecks, and challenges. We were able to create win-win situations for everyone, speeding up unloading when trucks arrived at the retailer.
- Tailored delivery process: We optimized deliveries to exceed expectations while increasing the volume of shipments to individual stores.
Through using RCS, our clients were able to develop unique and collaborative retail relationships. In addition to providing retail consolidation, we worked across suppliers, carriers, and retailers to ensure a flexible approach that worked for everyone.
The result: improvements to deliveries, networks, and client relationships
Our approach made a profound difference for our clients and the retailer:
- Significantly increased on-time deliveries: We increased on-time deliveries to 98%, 3% over the retailer's requirement of 95% on-time deliveries.
- Expanded delivery network: We supported delivery growth, with our clients now delivering into 10 retail distribution centers with plans underway for even more.
- Enhanced client relationships: We significantly reduced delivery fines and penalties, which led to greater trust between suppliers, carriers, and retailers.
- Maximized growth opportunities: Our clients are now investigating further RCS programs with other retailers.
By embracing creativity and building strong partnerships, GEODIS was able to turn a complex challenge into growth and success. This case study shows the power of innovative thinking in logistics, demonstrating that flexibility, collaboration, and unique solutions can overcome even the most demanding requirements.
How GEODIS can help
GEODIS is one of the biggest retail logistics and RCS providers in the U.S. and around the world. Here's what you can expect when you work with us:
- A leading on-time, in-full rate of 98%
- Strategically located warehouses and distribution centers throughout the U.S.
- Reach 99.5% of the continental U.S. in two days or fewer
- Strong relationships with major big-box retailers
- A wide and deep national, regional, and local carrier network
- Best-in-class retail consolidation services
- Standard operating procedures to meet retailer guidelines
- Complete quality control and auditing of all retail shipments and products
- Integration with the full range of transportation, warehousing, and freight forwarding GEODIS services
- Real-time visibility throughout the supply chain
Delight retailers by choosing GEODIS as your 3PL partner. Get in touch with us to discover how we can optimize your operations and retailer deliveries.