A significant quality control issue arose when a Global Fortune 500 chemical company discovered off-spec product contamination in their customer’s tanks. With a busy season approaching, the urgency to rectify the situation was paramount.
Key Problems Addressed
- Urgent quality control issue due to off-spec product delivery.
- High-demand season requiring swift and effective logistic resolution.
- Need for specialized handling and coordination to prevent further incidents.
The Challenge
A Global Fortune 500 chemical company learned a significant amount of off-spec product delivered from their facility had been dropped into their customer’s tanks. As demand for the product was needed for a quickly approaching busy season, timing to correct the issue was critical.
The product would need to be sample tested, then possibly pulled from the tank and replaced. The company estimated a need for 100 tanker trucks to deliver the quickest resolution. They contacted KAG Logistics for a solution.
Our Strategic Approach
KAG Logistics tailored a dynamic solution:
- Developed a 24/7 dedicated transportation model utilizing a fleet of just 20 dedicated trucks, ensuring continuous product movement for testing and correction.
- Implemented predictive analytics for efficient resource allocation, with the flexibility to scale operations as needed.
- Coordinated a dedicated project manager and trained drivers for specialized handling, ensuring familiarity with customer SOPs and product requirements.
In less than a week, the Logistics Solutions team designed an dedicated transportation model to include a 24/7 continuous flow of dedicated assets moving the product from the tanks to testing facilities and back.
Using predictive analytics, the project was allocated just 20 dedicated trucks (with the potential to increase that number if necessary) and a dedicated project manager to coordinate the continuous moves with dedicated drivers.
To keep costs in check, drivers were positioned near customer facilities to reduce empty miles. And, a fixed-cost, dedicated-driver pricing model was established to provide the company with predictive invoicing.
It was critical for drivers to have an intricate knowledge of the product and customer requirements. Dispatching the same dedicated drivers to customer facilities allowed drivers to quickly become familiar with the standard operating procedures.
Outcomes Realized
- Completed 274 orders in six months, with a team of 20 dedicated drivers.
- Maintained a flawless safety record with zero spills or incidents.
- Introduced a fixed-cost pricing model to provide predictable invoicing, optimizing costs while maintaining high service levels.
The Verdict
You can’t predict everything; challenges happen. Just know, when the unexpected strikes, we’ve got your back. Don’t wait for the unexpected to catch you off guard. Start a conversation with us today.
