Case Study071224_CPG Startup Case Study

Innovative From the Ground Up

CHALLENGE

Within six months, Kenco’s solutions delivered remarkable outcomes, setting a benchmark for safety, efficiency, and cost savings.

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Safety Incidence Rate

<2%

Productivity Increased

>66%

CPU Decreased

<35%

Temp Labor Reduced

<56%

Productivity surged by 66%, exceeding initial expectations.

The safety incident rate was reduced to below 2%, marking a significant enhancement in workplace safety.

The reliance on temporary labor diminished by 56%, indicating improved labor efficiency and better cost control.

The cost per unit (CPU) decreased by 35%, resulting in substantial savings for the CPG brand.

Overcoming Transition Challenges

A Kenco CASE STUDY

Kenco Partners to Create a State-of-the-Art Mixing Center for a CPG Brand

Explore the Kenco Operating System (KOS)

A Proven Path to Succes

A leading CPG brand partnered with Kenco to build an advanced mixing center in Chicagoland, designed to streamline operations with cutting-edge automation and proven supply chain expertise.

Kenco brought extensive experience to the project, having successfully completed over 100 startups in the past five years across the nation. Central to Kenco's approach is the Kenco Operating System (KOS), which standardizes processes and ensures safe, timely optimization for new operations. By leveraging its vast network of facilities, Kenco implemented a franchise model that fosters innovation and continuous improvement throughout the startup phase.

This partnership not only fulfilled the CPG brand's immediate operational needs but also established a foundation for ongoing success and innovation in their supply chain strategy.

Temp Labor Reduced

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The CPG brand faced concerns about whether promised insights and innovations would be realized.

Uncertainty in Partner Transition

Facility Scale

Operational Complexity

The project involved developing a 1.34-million-square-foot automated mixing center.

The facility needed to manage all product lines while ensuring seamless operations.

Integration of cutting-edge technologies, including Automated Guided Vehicles (AGVs) and Automated Layer & Case Picking systems.

Advanced Automation Requirements

SOLUTION

RESULTS

A leading CPG brand partnered with Kenco to build an advanced mixing center in Chicagoland, designed to streamline operations with cutting-edge automation and proven supply chain expertise.

Revolutionizing Supply Chain Efficiency

Kenco's State-of-the-Art Mixing Center for a CPG Brand

A Kenco CASE STUDY

Overcoming Transition Challenges

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Welcome to Kenco's Operating System!

Kenco O/S Sites

We did more than build the system, we use it. The benefits of having the hightest standards in the industry are in the numbers.

Lower Safety Incidents

51%

Lower Turnover

48%

Higher Efficiency

31%

Kenco has built and actively uses the most comprehenseive operating system in the three PL space.

It encompasses six main facets of business, and requires stringent operation standards to meet minimum requirements.

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Six areas where Kenco O/S drives successful operations.

Looking to improve is day-to-day life at Kenco. Kenco's team of experienced logistics professionals and engineers assess processes to continually locate opportunities for improvement in operations.

These incremental improvements lean on technology, and include identifying cost savings and operational efficiency improvements.

Kenco O/S typically delivers 5% operational savings year-over-year.

6. Continuous Improvement

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We know your supply chain is an integral part of your business and we act as your partners, growing together.

To analyze the effectiveness of account planning, we look to you, our customer, and ensure we're building mutually beneficial, long-lasting relationships.

Kenco's customer attrition rate is 70% lower than the industry average.

5. Account Planning

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Labor continues to be one of the most valuable resources in logistics. As a part of Kenco O/S, we have established KPIs and growth standards for how our sites should utilize, increase efficiency of and nurture employees.

To ensure our people are being utilized to the best of their abilities, we look to rates like the following:

We employ proprietary systems to find opportunities to improve our labor numbers. Take a look at our data-driven Labor Management System here.

CPUs Efficiency

Productivity Utilization

OSHA recordables

4. Labor Management

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People are the heartbeat of everything we do, and we know that happy employees create happy customers. We've worked to build a pool of deeply experienced, highly trained employees.

To ensure we're operating with the best and brightest and to grow with our team, we utilize technology to track and measure key metrics such as engagement scores and coaching sessions.

Kenco O/S sites have 48% lower turnover.

3. Talent

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Operating with the highest quality standards ensures our customers and their customers are receiving the best service, every time.

To do this, we look at important quality benchmarks, and lean on technology, training and innovation to improve site performance.

Kenco O/S sites show: 99.8% on-time shipping 97.3% inventory accuracy 99.98% order accuracy

2. Quality

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Our Safety standards begin with the fundamental belief that every accident and injury is preventable.

We look at key metrics to establish baselines and create improvement plans with our experienced teams.

Kenco sites perform 42% better than the industry in recordable injuries, saving nearly $375,000 per site annually.

Kenco O/S sites experience 51% lower incident rates.

1. Safety

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Kenco O/S System is Driven By the Pursuit of Excellence

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