Brian Smith

Case Study — Integrated Logistics

The Customer:

This company is an industry leader in integrated manufacturing of paperboard and paper-based packaging. They have two main business segments, container board and corrugated container operations, and has been in the business more than 80 years. Like most manufacturers in the paper industry, this company has been part of multiple mergers and acquisitions over the years to make it the company it is today.

The Situation:

Because they had been through so many mergers and changes over the years, each region experienced a silo effect and operated independent of the corporate structure. There were contracts with various warehousing companies across the nation, based not on logical business reasons but personal relationships, and a general lack of sophistication and efficiency throughout their network. In an effort to cut costs, this company engaged Wagner to help it consolidate functions, consolidate vendors and increase efficiencies.

Solution:

In a period of less than three years, the Wagner team opened and began operating four warehouse locations east of the Rockies.

  • Midwest – In the first contract, Wagner came in, evaluated all employees and started implementing our in-house warehouse management system (WMS). The operation started up in 150,000 square feet and, for the first time, was run based on RF scanning rather than tribal knowledge and paper pick tickets — everything taking place just 13 days after the contract was signed. Wagner eventually found another facility that better fit the company's needs and cut space costs by more than $100,000 per year. Wagner now runs the facility at optimum efficiency, handling palletization, kitting and converting pup units into full units. The customer enjoys record inventory accuracy above 99.99 percent.
  • Florida – Next, this customer outsourced the labor and facility management of its Florida location to Wagner, including the complex shipment of mixed loads and unique labeling required. The first truck was received only two days after the contract was signed. Today the operation runs at a base of 50,000 square feet and up to 90,000 during seasonal peaks. Wagner handles all outbound orders to their customers and all unique customer requirements. Inventory accuracy at this facility also runs above 99.99 percent.
  • Texas – One month later, Wagner started up yet another operation for them. In typical fashion, it was receiving product two days after the contract was signed, and only three weeks after proposal. This facility runs about 130,000 square feet, including food-grade space with AIB “Superior” ratings. In addition to traditional warehouse services, Wagner provides inspections of corrugate, rewrapping of roll stock, and kitting and packaging work, giving this customer a “one-stop solution” for all of their needs and accurate inventories running well beyond expectations.
  • Ohio – Two months after receiving the RFP, Wagner moved the customer out of 165,000 square feet of warehouse space in three different cities and into a consolidated 140,000-square-foot dedicated operation. We sourced a facility, purchased equipment, set up the Wagner WMS and hired the entire staff. Subsequently, by utilizing WMS data, the Industrial Engineering team and Operations have been able to shrink their footprint by another 10,000 square feet.

Results:

  • A consolidated provider for several markets to ensure professional relationships
  • A partner that can open and close operations typically within 30-45 days
  • The most accurate inventories the customer has ever recorded – above 99.9 percent
  • Live, online inventory viewing through web portal
  • Packaging capabilities interweaved with warehousing
  • No driver detention fees, 100% unload compliance
  • One stop for corrugate and roll stock storage along with packaging and inspection capabilities
  • Significant gains in corrugate and roll-stock productivity KPI’s

Above all, Wagner gives this customer flexible staffing and space with a partner that works to reduce costs, one with an ongoing continuous improvement program and the technological capabilities to back it up.

The Wagner Team

Wagner's seasoned logistics pros competitively engage in helping your business work smarter. We do it through advantages of structure, scales and integration.

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