Case Study
Securing the Supply Chain of Reckitt Benckiser , a Healthcare and Hygiene CPG Giant, During the COVID-19 Crisis
Customer
Overview
Solution
Results
Customer Profile
Reckitt Benckiser (RB) is a growing community of 40,000+ diverse, talented entrepreneurs – all driven to make the world a happier, healthier place. Through research and development, they make better products that empower everyone to take their health into their own hands and homes. RB’s two business units are: Healthcare - consumer health brands including infant nutrition and over-the- counter medicine such as Delsym, Mucinex, Mega Red, and Airborne; and Hygiene & Home Business - traditional cleaning products such as Lysol, Finish, Airwick, Resolve, and other iconic brands..
Overview
When the World Health Organization declared COVID-19 a pandemic in March 2020, RB stepped up as a global leader in health and hygiene to help combat the novel coronavirus. With monumental demand for hygiene and cleaning products and over-the-counter cold and flu remedies, RB turned to Transplace to develop logistics strategies and secure its supply chain.
SOLUTION
Collaboratively source capacity and
facilitate planned continuous moves
through Transplace Lanehub
With ~$15 billion of freight under management, Transplace has the largest North American network that was an invaluable resource for RB in dealing with COVID-19.
Without knowing when inventory demand for hygiene and cleaning products would stabilize, RB worked with Transplace to put in place a structured approach to handle the volume surge and continuously replenish depleted store shelves.
Transplace’s Transportation Management System (TMS) enabled increased capacity forecasting and scheduling. The Transplace Control Tower provided enhanced visibility for the team to monitor shipments and react to rapid changes in the network. Using Artificial Intelligence (AI) and machine learning, the control tower assisted in managing daily exceptions. The risk prediction models identified possible shipment disruptions sooner, allowing shippers to mitigate risks.
During the crisis, RB enhanced its capacity leveraging Transplace Carrier Management with a wide net of carriers, and Transplace Network Solutions (TNS), including dedicated capacity and Dynamic Continuous Moves (DCM) to create additional capacity and mitigate costs.
OptiPro cross-client collaboration increased delivery frequency to targeted customers without raising costs. OptiPro provides greater efficiencies for less-than-truckload (LTL) and truckload (TL) through improvements in utilization and efficiencies. It is an asset-based solution which allows shipments to flow seamlessly through the network at a lower cost with better service.
Partnering with Transplace has provided remarkable reliability for RB’s logistics and supply chain operations – even during unpredictable circumstances due to the COVID-19 crisis.
When RB increased production and distribution of home, health and hygiene products, the global CPG leader expanded operations and staffing requirements. RB’s volume increased 17% in March 2020.Transplace immediately addressed the volume surge by accessing its expansive North American capacity network. The ability to flex capacity enhanced supply chain efficiencies. In addition, RB began using air charter flights to deliver key products. Transplace responded with providing seamless contingency backup operations with after-hours staff support, 7 days a week.
RB gains insights and intelligence from Transplace’s vast network – including daily and weekly visibility of market conditions – to facilitate critical logistics decisions while lowering costs and risk. Transplace’s CPG expertise provided additional insight into best practices and data to assist in RB’s transportation-related strategies.
Operational Excellence
RESULTS
Working with Transplace, Avery Dennison has achieved 15% cost reductions in customs services and 10% savings in freight. Transplace provides access to 1500+ approved carriers in Mexico to support capacity surges, take advantage of economies of scale, and meet Avery Dennison’s business goals.
ABOUT TRANSPLACE
Transplace, an Uber Freight company, powers one of the largest managed transportation and logistics networks in the world. Our tech-enabled services and solutions platform are backed by the unrivaled combination of innovative technology and a dedicated team of domain experts, engineers and data scientists. We are committed to thrilling our customers by consistently improving supply chain performance and providing greater visibility and control of their logistics networks. Companies of all sizes rely on Transplace to deliver trusted outcomes through best-in-class logistics management, strategic capacity and
cross-border services.
Learn more about the Transplace Transportation Management System (TMS)
Click Here
In response to the world-wide healthcare crisis, RB increased production and distribution of home, health, and hygiene products. Inevitably, there was a surge in volume for consumer packaged goods (CPG) companies across its supply chain. The just-in-time (JIT) programs in place at many retailers proved to be inflexible, leading to more rapid shortages. A crisis like COVID-19 requires inventory and manufacturing flexibility to serve the marketplace.
Efficient logistics for healthcare and hygiene essentials were further challenged with excessive delays and buildup of freight at docks because of social distancing restrictions for drivers, shippers, and receivers. The addition of health questionnaires, temperature screening, and other preventative measures also caused bottlenecks.
As in RB's case, real-time visibility of logistics and supply chain networks is critical for organizations to make informed business decisions and flex to rapidly changing circumstances.
Opportunity
Opportunity
The COVID-19 crisis requires rapid response to complex and dynamic circumstances. Transplace’s advanced logistics technologies allow real-time visibility and immediate adjustment of distribution strategies to support our retailer partners. Access to Transplace’s vast network increased shipment velocity, expanded capacity, and minimized the cost impact even during these challenging times. We have a truly collaborative relationship with the Transplace team, allowing us to optimize operations performance despite the unprecedented challenges to the global supply chain.”
- Dave Kraus, Director of North
American Transportation,
Reckitt Benckiser
Operational Excellence:
Confidence and Peace of Mind: