Helping a Chemical Manufacturer Improve Performance with Better Plant & Shuttle Support

In 2015 a leading specialty chemical manufacturer was seeking a solution to consolidate two warehousing and distribution operations supporting its plant in the Charleston, SC area to one operation. They needed a third-party logistics partner with both chemical expertise and a strong safety track record.

This chemical manufacture’s product portfolio is wide ranging with a variety of applications, including asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants, publication inks, coatings, elastomers, bio-plastics and automotive components that reduce gasoline vapor emissions.

After a competitive bid process for third party logistics providers, Sunland’s team was awarded the opportunity to help design, launch and manage the 300,000 SF chemical warehousing facility and distribution operation with storage solutions for both hazardous and non-hazardous product lines including specialty storage for both flammable and corrosive products.

Warehousing & distribution operations support for the manufacturer’s plant improved with increase safety, quality, and customer service level metrics. However, both the customer’s plant operations team and Sunland’s operations team were experiencing planning & efficiency challenges caused by poor performance from the shuttle transportation fleet managed by another third-party provider hired by the manufacturer.

The shuttle fleet’s reliability was unacceptably low causing excessive overtime at the warehouse facility and disruptions at the manufacturer’s operation. Additionally, the safety performance of this carrier was not in compliance with the manufacturer’s Responsible Care standards.

As a strategic supply chain partner for the chemical manufacturer, Sunland’s account team conducts business reviews where different relationship owners for both organizations come together to align on various aspects of the partnership including opportunities for continuous improvement. During a Business Review, both teams agreed that a better solution to improve shuttle fleet performance was needed.

Sunland’s team developed a solutions design and proposal with its sister company, SunTrans, LLC. that was accepted by the customer.

The goal of the solution was to build a shuttle service in-keeping with Responsible Care Management Practices that would allow greater efficiencies, improve services between the plant and warehouse, increase safety, and decrease costs.

Key elements and process steps of the solution development included:

• Conducting a gap analysis of the Responsible Care Mgmt. Practices vs the Current State practices.
• Leading an Advanced Quality Planning Session with a cross-functional user group drawn from Operations, Plant, and stake holders throughout the supply chain.
• Conducting a detailed analysis of the production schedules, warehouse schedules, and time studies of the traffic lanes.

With a dedicated fleet of trucks and trained drivers the shuttle program launched.