Case Study: Transforming Legacy Operations
When a legacy manufacturer with centuries of tradition meets modern logistics challenges, transformation becomes essential for long-term success. A family-owned specialty food producer with operations across multiple continents faced a common issue in manufacturing: rapid growth outpacing legacy systems and capacity.
Challenge:
A family-owned specialty food manufacturer with operations across multiple continents was experiencing the growing pains of success. Seasonal demand spikes pushed warehouse capacity beyond 100%, forcing trade-offs between efficiency and cost. With a single warehouse driving increased risk and distribution expenses, leadership faced a clear inflection point: growth was outpacing legacy systems.
Approach:
LCG partnered with the client to assess their end-to-end supply chain, quantify total costs, and evaluate customer geography. A cross-functional team—from warehouse supervisors to executives—helped build a business case for transitioning to a distributed third-party logistics (3PL) model.
The program followed a phased, data-driven rollout:
• Wave 1: High-volume, low-complexity customers
• Wave 2: Medium-volume and complexity
• Wave 3: Low-volume, low-complexity customers
Eight potential partners were evaluated through a formal RFP process including scenario modeling and reference validation. The final solution moved the client from one central warehouse to three strategically located 3PL hubs across the U.S.
Each phase followed five structured stages—Plan, Transfer Inventory, Transfer Orders, Start Shipping, and Stabilize Operations—supported by detailed documentation, KPI dashboards, and team training to ensure service continuity.
Results:
The redesigned supply chain delivered measurable business impact within the first year:
• 67% reduction in shipping distance
• 10% reduction in shipping costs
• New logistics and procurement structures aligned to the 3PL model
• A scalable framework enabling future co-manufacturing partnerships
Outcome:
By combining disciplined planning, cross-functional alignment, and continuous improvement, the company turned operational strain into strategic advantage. Today, their supply chain is leaner, more resilient, and ready for growth.
Lesson:
Modernizing logistics isn’t just about cutting costs—it’s about creating flexibility and scalability that fuel long-term success.
