Ensuring their products reach retailers involves several critical steps. First, raw goods are imported into Charlotte’s distribution center from points throughout the nation and worldwide. Simultaneously, products are imported to the west coast for delivery to the Mesa distribution center. This process demands extensive collaboration and communication to maintain product integrity.
Drayage: Products are transported from the port to distribution centers.
Storage: Goods are kept in temperature-controlled facilities to preserve quality.
Distribution: Products are distributed through multi-stop routes, sometimes involving up to 26 stops. Each delivery location has unique requirements, such as ferry transport, security clearances, appointment scheduling, short notice, and tight delivery windows.
Rapid expansion of the company by opening several new store locations made timely service and communication paramount to ensure products arrive on schedule for store openings.
Hissho Sushi initially lacked transparency in their inbound freight transportation costs, which were hidden within the cost of goods. Seeking clarity and control, they aimed to change this by gaining insight into their freight expenses.
For outbound freight, a key hurdle was streamlining order processing to enhance decision-making in carrier selection. With deliveries spanning multiple stops, the need for real-time updates per stop was crucial. They sought immediate feedback from our Transportation Management System (TMS) via email to optimize operational efficiency.
LTL services were backed up, which caused the need to expedite freight and increase costs
MVP Logistics took charge of optimizing load operations for Hissho Sushi to enhance decision-making. By implementing a business intelligence platform with PowerBI and MacroPoint, we enabled real-time visibility into critical KPIs. Our solutions provided Hissho with instant delivery acknowledgments, labor planning tools, cost analysis dashboards, and more.
In a strategic move to enhance service efficiency and market reach, Hissho Sushi embarked on an expansion of their distribution network. Originally centralized in North Carolina (NC), the objective was to include Arizona (AZ) as a key distribution hub. This decision was aimed at addressing the evolving needs of target markets and capturing growth opportunities.
The primary goal was to extend the distribution footprint without compromising cost-effectiveness. It was imperative to maintain the delivered cost per pallet below a pre-determined threshold, ensuring that expansion did not erode profitability or customer satisfaction.
To determine the best strategy for this distribution network MVP Logistics looked at several different areas.
To mitigate cost volatility, we instituted a rigorous approval process for expenses exceeding 15% of the original quoted truck rate, addressing the critical need for rapid pickups and deliveries on short notice.
Furthermore, we instituted a quarterly pricing guideline to establish clear benchmarks and pricing stability, which facilitated a reduction of 5-7% in previous per-mile rates and yielded a 13% savings on outbound transportation costs since assuming control of their account. Additionally, we achieved a $500 saving per inbound container from port to door and relocated shipments from three state locations to a new distribution center in Arizona, resulting in a net savings of $15,000. Our strategic improvements also led to nearly 100 additional deliveries at $75 less per pallet compared to the previous year.
To eliminate communication issues, we deployed an on-site employee at Hissho’s Charlotte location, significantly enhancing customer service and operational coordination. By conducting weekly meetings, we maintained proactive oversight of cost fluctuations and promptly addressed any service-related concerns. This strategic decision fostered more effective communication and ensured consistent alignment between our teams.
Our strategic partnership, combined with our deep industry knowledge and a highly skilled team, significantly enhanced Hissho’s customer experience. We played a crucial role in optimizing their logistics during periods of record-breaking sales. Our solutions enabled Hissho Sushi to confidently expand to new locations with minimal lead time, demonstrating the scalability and reliability of our logistics operations.
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