A leading beverage vending machine manufacturer overcame space, inventory, and labor challenges by outsourcing logistics operations to KGC. This strategic move enabled a 40% increase in production capacity without any capital investment.
How KGC Helped Boost Production by 40%
The Challenge
The customer, a multinational beverage vending machine manufacturer, faced operational hurdles due to:
Limited warehouse space impacted production efficiency.
Inaccurate tracking caused delays and inefficiencies.
Rising costs strained operational budgets.
KGC’s Solution
KGC provided a tailored outsourcing plan that included:
Moving raw materials, QC, and finished goods to an external facility near the factory.
Ensuring timely dispatch of quality-checked materials for production.
Parts received, inspected, and binned at the new warehouse, with finished goods transported for dispatch.
Key Benefits
With non-core activities outsourced, the factory focused entirely on production.
Real-time tracking improved stock management and order fulfillment.
Lower labor and management costs led to greater profitability.
Efficient logistics ensured timely deliveries and dispatches.
Outcome
By partnering with KGC, the manufacturer achieved a 30% production boost at their existing facility with zero CAPEX, optimizing operations and enhancing supply chain efficiency.
KGC’s expertise in logistics outsourcing empowers manufacturers to scale operations efficiently without capital investments. Strategic logistics planning helps businesses focus on their core competencies while driving growth.