Despite expansion and growth, a provider of full-service component meal systems was facing uncertain future sales. The company was seeking to assess its distribution network and reduce overall supply chain costs.
- This company is a provider of full-service component meal systems, as well as a variety of component entrees, fruit cups, snacks, and sandwiches that are sold individually to school districts, nursing homes, and homeless shelters across the country.
- Services include delivery, menu planning, nutritional analysis, equipment, equipment maintenance, training, marketing, and promotions.
- Company was growing and expanding through acquisitions and increased sales, but was unclear about future sales due to government contract bids.
- With recent growth and a questionable future income, the company needed to address network issues and reduce expenses by realigning its supply chain and decreasing overall supply chain costs.
Tompkins International's Role
- Developed a network assessment for the current manufacturing and distribution location to provide the best transportation and routing methods for moving manufactured goods from production to warehouses and third-party logistics (3PL) partners at the lowest cost.
- Identified the lowest cost delivery method and recommended a plan to purchase and implement a robust package that would optimize daily routing.
- Recommendations included reducing the company’s internal fleet of delivery trucks and lowering overall delivery miles.
- With these changes, the company will reduce distribution labor, increase warehouse efficiency, and boost operational savings—creating a positive impact on the bottom line.
- The savings will allow the company to continue to be very competitive when bidding on additional meal delivery services and lead to a higher level of profitability. Additionally, its customers will continue to receive quality products on time.