Partnering for Measurable Supply Chain Improvements
Reducing Tons Of Supply Chain Waste
SalonCentric, a nationwide wholesale salon and beauty supply distributor, wanted to find a way to reduce its impact on the environment while also minimizing its supply chain costs.
One area of its supply chain that SalonCentric saw an opportunity to make a difference with was the company's use of traditional cardboard boxes for shipping. Corrugate boxes, a staple of most retail supply chains, are great for transportation. However, such containers have a short shelf life and quickly find themselves in landfills.
To address the problem, SalonCentric invested in reusable plastic tote bins. The use of the bins had an astounding positive impact on the company's environmental footprint.
“As a result of our tote return program, SalonCentric has been able to keep 325 tons of corrugate out of landfills and recycling facilities across the country annually, which has really been a huge win in helping us accomplish our environmental goals.”
- Eric Reddish, director of operations, SalonCentric
While switching to reusable plastic totes helped the company reduce its environmental impact, handling and transporting the bins to and from retail locations and distribution centers at a minimal cost was the next challenge.
Having partnered with Averitt Express and PITT OHIO, the companies set forth to devise a plan that would not require a dedicated pickup for the empty bins. The solution to the challenge was to kill two birds with one stone. The carriers would pick up empty totes while making deliveries to the stores, and then return them to a consolidation point. As a result, SalonCentric has managed to save approximately $40,000 annually in transportation costs.
Increasing Customer Order Windows
SalonCentric expressed a desire to improve their customer experience by significantly increasing order windows. Together, Averitt and PITT developed a unique distribution model tailored to SalonCentric's specific needs that provides customers with additional ordering time while also maintaining the same delivery service.
To achieve this, the alliance partners developed a strategic distribution model that includes pool points and zone skipping procedures. By zone skipping via line haul, the transportation of approximately 5,000 small parcels a week are reduced by an average of 1-2 zones.
The reduction in zones has allowed SalonCentric to extend its ordering window by as much as 7 hours. Additionally, the new supply chain model and added utilization of drop trailers has reduced the demand on SalonCentric's distribution centers and cut costs by an additional $50,000 annually.
PARTNERS WORKING TOGETHER FOR SOLUTIONS
Solutions that benefit both shippers and carriers are the foundation beneath The Alliance Award program, sponsored by Logistics Management and SMC3. Averitt and their partners have been awarded The Alliance Award for four years in a row due to creating valuable partnerships with measurable results.
Learn more about Averitt's retail solutions in the video below:
