Major Grocer Saves $1.5 Million with Relogistics Onsite Solutions
See how we helped this retailer overcome challenges with trailer availability, salvage material processing, and more.
- The Customer: Major grocer with 40+ distribution facilities and 2,700+ retail stores across the country.
- The Problem: Shortage of trailers at their distribution center.
- Our Findings: Inefficient unloading and processing of salvage material slated for return to the distribution center on company trailers from their retail locations.
- Our Solutions: Improved trailer availability by unloading all trailers upon receipt, which improved trailer turnaround time. Improved data and real-time insights by implementing our proprietary online data management platform Velocity. Improved safety and sanitation by conducting frequent training for team members.
- The Results: By outsourcing the salvage operation to Relogistics at one of their distribution centers, the customer saved $1.5 million and expect to see further cost reductions as the program is implemented at other locations.
When our team was presented with the opportunity to help one of America's largest grocery retailers improve its salvage operation, we were motivated to provide the best possible solutions. Minimizing disruption in their supply chain is the number one priority for this grocer in order to create a seamless grocery-shopping experience for over 9M people across the country.
With over 40 distribution facilities across the country and over 2,700 retail stores, this customer chose to partner with Relogistics Services, a 48forty Solutions company, because of our proven on-site service expertise, industry know how, and extensive national capabilities. We have been a partner and advisor to this customer for over seven years and are constantly working to improve their total salvage operation.
Combined, Relogistics and 48forty provide onsite operations at more than 180 retail locations, where we process more than 330 million pallets. We are dedicated to supporting our customers through a consultative approach, backed by the ability to implement our customized solutions.
The customer initially approached us because they were experiencing a shortage of trailers at their distribution center. These trailers were needed to deliver product from the distribution center to the retail stores.
Their issue was rooted in inefficient unloading and processing of the salvage material slated for return to the distribution center on company trailers from their retail locations. When the issue was discovered, the salvage operation was being handled on-site by a 3rd-party company.
Salvage material must be unloaded at the distribution center from the company trailers, counted, inspected for quality, sorted, and returned to asset owners for reuse or recycling. They were relying on the 3rd-party partner to quickly unload trailers and accurately capture data associated with the unloads.
This salvage material consists of:
- Whitewood, one-way pallets
- Pooled pallets
- Reusable plastic containers
- Loose plastics
- Bakery trays
- Milk crates
Inefficient unloading, sorting, and processing of this salvage material was causing several concerns.
Trailers were unavailable for the distribution center to deliver essential groceries and merchandise to retail locations
The customer experienced financial impacts from the loss of use of company assets
- Revenue decreased due to empty retail shelves
- The customer needed to rent supplemental trailers
- Increased expense of purchasing additional reusable packaging to support operation
Poorly managed salvage operations plus rented trailers led to a decrease in the available lot and dock space, which caused serious safety and sanitation hazards
While undergoing a reconciliation of compensation for recycled product, the customer identified a substantial reduction in year-over-year revenue; however, they had no data to support the claim
By outsourcing the salvage operation to Relogistics at one of their distribution centers, this major grocer saved $1.5 million and expect to see further cost reductions as the program is implemented at other locations.
Changes Made Day 1
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