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Confectionary Brand Case Study

FST Logistics Partners with Confectionary Brand & Overcomes the Complexities of Increased Inventory

Importance of a Full-Service 3PL

Challenge: Inaccurate data was communicated for the warehousing of confectionary product, leading to short-staffing, space limitations, and a lack of equipment. 

Partner: Confectionary Brand

  • Over 25 brands worldwide, selling to over 150 countries
  • Owner of confectionary brands including chewing gum, hard candy, chocolate & more
Candy
Grocery

Impact

  • Scaled warehouse services from 4,500 pallets to 12,000 pallet positions
  • Increased inventory turns from once a month to twice a month
  • Altered staffing solutions due to the increase in orders
    from 80 weekly orders to 240 with 500 backlogs
  • Reduced shipping time to 72 hours

Problem

  • The worldwide confectionary company had acquired a new brand, which would be housed at one of FST’s facilities
  • During their acquisition process, inaccurate data was communicated with the confectionary company, leading to improper preparation on behalf of FST
  • The inaccurate data led to short-staffing, space limitations, and a lack of equipment

Solution

  • Utilized FST's Columbus, OH warehouse network
  • Kept open lines of communication and maintain detailed logs to track inventory levels and order processing
  • Used FST's labor sharing model to address labor shortage
  • Ran shuttles on FST's assets to transport inventory between facilities
  • Utilized freight brokerage and carrier relationships to ensure the confectionary product arrived to retailers on-time and in-full

Results

  • The inaccurate data led to months of work to understand the product’s supply chain functionality and the customer’s needs
  • The campus-like warehousing network allowed FST to flex where needed and share labor
  • FST Logistics was able to leverage its various divisions to support the product’s demands

Logistics Services Provided

Warehousing

Retail Consolidation

LTL Transportation

Freight Brokerage

Overview

When a global confectionery company acquired a new brand, they turned to FST Logistics to manage warehousing and fulfillment operations. However, inaccurate data provided during the transition significantly underestimated the scope of the account. What was expected to be a standard retail fulfillment operation quickly expanded into a much larger undertaking, creating challenges related to warehouse capacity, staffing, equipment availability, and order volume.

To accommodate a 166% increase in pallet positions and a dramatic rise in weekly orders, FST leveraged its Columbus-area warehouse network to expand storage capacity across multiple facilities. A labor-sharing model was utilized to shift resources where demand was highest, while implementing overtime and incentive programs to maintain service levels during a labor shortage. Close collaboration between FST’s operations team and the customer’s supply chain team ensured continuous communication and alignment as new challenges emerged.

Despite the complexities caused by inaccurate data and rapid growth, FST successfully scaled operations while maintaining service performance. By leveraging its integrated warehousing, transportation, and brokerage capabilities, FST transformed a potentially disruptive situation into a successful long-term partnership. The project demonstrated the value of a flexible, full-service 3PL partner capable of adapting quickly to changing customer demands and supply chain complexities.

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