The Challenge
Consumer demand for food and beverage products fluctuates throughout the year, which makes it difficult for companies to maintain optimal inventory levels. To navigate seasonal peak demand, these companies stockpile inventory. But ineffective manufacturing, assembly downtimes and suboptimal distribution networks challenge these preparations. As Forbes describes, over 82% of companies experienced unplanned downtime over the past three years, costing up to $50 billion a year.
One national food and beverage manufacturer forecasted a surge in consumer demand and sought to produce a significant inventory stockpile ahead of its summer peak season. But its traditional fixed supply chain network could not accommodate additional inventory. Lack of capacity led to production downtime, inefficient transportation and lost sales.
The company needed additional, flexible distribution fast—without investing in long-term facility contracts.
The Solution
The manufacturer leveraged Flexible Warehousing Infrastructure to expand and contract distribution capacity to match inventory to demand. They added four Flexe Logistics Network facilities to mix, sort and distribute products. The Flexe Operations team supported facility launches in four weeks. And the nodes served 60+ regional distribution centers. All without investing CapEx in new fixed facilities.
Results
With Flexe, the food and beverage manufacturer optimized its distribution to stockpile critical inventory and reduce stockouts, moving 350+ additional truckloads to market weekly. Flexe provided expert network analysis, sourced qualified operators, provided a single technology integration and accelerated site launches. The result: The company accelerated production, distribution and ultimately sales—by millions of dollars.
Compare fixed vs. flexible storage costs.
