Specialty Plastics Manufacturer Wraps Up $2.5MM+ In Savings
Overview
Sheer’s client, “HPF Corp.,”* is a global leader in manufacturing high-performance films, synthetic fibers and textiles, carbon fibers, plastics, chemicals, and pharmaceuticals. HPF operates multiple manufacturing facilities in the United States and is a major producer of precision-performance polyester, polypropylene, metallized, and bio-based films, producing nearly 200 million pounds of film annually for flexible and rigid packaging, lidding, graphic, industrial, optical, and electronic applications.
Challenges & Needs
Sheer Logistics was engaged by HPF to provide transportation technology and manage carrier capacity. Sheer Logistics was tasked with optimizing transportation and reducing costs while maintaining the highest levels of service. Sheer Logistics generated significant savings for HPF through rate and optimization improvements. However, HPF faced additional challenges due to the location of their distribution center and packaging process.
Solutions
To address these challenges, Sheer Logistics conducted a detailed analysis of HPF’s distribution network and identified opportunities for optimization. The Sheer team also identified the relocation of the distribution center as a potential solution to reduce transportation costs and improve service levels. Sheer Logistics worked with HPF to assess potential locations, evaluate transportation costs, and determine the best approach to implement the relocation.
Additionally, Sheer Logistics identified an opportunity to implement an automated packaging process. This solution would improve efficiency, reduce labor costs, and decrease the likelihood of product damage during shipping. Sheer Logistics conducted a thorough analysis of the benefits associated with the automated packaging process, including cost savings and improved quality.
AT A GLANCE
Industry
Manufacturer of high-performance films, synthetic fibers and textiles, carbon fibers, plastics, chemicals, and pharmaceuticals.
Modes
Truckload
LTL
Last Mile
Intermodal
Services Provided
Managed Transportation Services
Sheer TMS
SheerExchange integration
Procurement
Project Management
Network Design
Automation
Warehousing
Annual Revenue
$750MM
Cost Savings
$2.5MM over the course of the engagement
Results
“To say they knocked it out of the park would be an understatement.”
After implementing both solutions, HPF realized significant cost savings and increased efficiency. The relocation of the distribution center reduced transportation costs, improved service levels, and reduced lead times. The implementation of an automated packaging process improved efficiency, reduced labor costs, and decreased the likelihood of product damage during shipping.
Through its analytics, Sheer Logistics was able to quantify the savings associated with these projects, and HPF captured a significant return on investment. As a result of these successes, HPF recently renewed its contract with Sheer Logistics for an additional three years.
“If we gave out annual vendor awards, Sheer would win every year.”
Sheer Logistics successfully helped HPF achieve significant cost savings and improved efficiency. The partnership between the two companies has been strengthened as a result of the successful projects, and Sheer Logistics has become a trusted partner in its client’s supply chain.
*The company name has been anonymized for the purposes of this case study.
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