Third Party Logistics Case Study Estron Chemical
Estron Chemical
Estron Chemical is a leader and global supplier in Powder Coatings. Bradford Global Logistics has supported Estron in developing a global outsourcing model for managing inventories and order fulfillment to some of the largest Powder Coating manufacturers in the world like Dupont, Herberts, International Paint, and Rohn & Haas.
Warehouse Process
The Powder Coating industry follows strict ISO guidelines. Bradford must ensure that Certificate of Analysis data, lot number, HMIS, and product numbers are captured and translated to the unique end-user standard codes. Bradford will convert the lot number and product number to meet the specific manufacturing code. Barcodes are created that route specific Estron products directly to the appropriate batch manufacturing line. Bradford Global Logistics manages the warehousing and distribution of the product from the point the product leaves Estron's plant to the point the product is delivered from Bradford's warehouse "Just-in-Time" to the manufacturing facility.
3PL Information Technology
Bradford Global Logistics authored the process of tracking and controlling the product utilizing standard CODE128AUTO barcode labels to maintain real-time control of pipeline inventory. Web-enabled inventory management solutions are utilized to ensure data visibility. Data triggers are set that can automate the notification of inventory availability exceptions by highlighting potential inventory shortages to prevent failure.
Delivery Systems
Bradford manages and executes the entire outbound process of the product including the use of its own delivery trucks for transportation. Although Bradford Global Logistics meets a pre-defined dock schedule, we also furnish dedicated expedite services for assisting the manufacturing facilities, meeting special customer requests, and changes in batch production schedules.
Summary Results
Estron has enjoyed enhanced logistics capabilities and the ability to keep critical assets directed at core profit centers. Estron has been able to shelve plans for the building and staffing of remote manufacturing and distribution sites by leveraging the Bradford Global Logistics network. Estron estimates that Bradford has eliminated the necessity to spend $6 million dollars in capital acquisition projects. In addition, Estron has reduced the cost of their logistics staffing and inventory requirements by more than 40%. Bradford has also ensured a pipeline inventory that has delivered a 99.97% probability of being able to meet the production needs of Estron customers.
