A large, U.S.-based, quick-serve food chain elected to bring its distribution services in-house in 2018. The goal was to reduce reliance on 3PLs, lower cost and ensure the quality of their product through improved traceability across the supply chain. The initial plan was to internalize 51% of their distribution capacity, making their restaurants the sole focus of their transformed distribution centers (DCs).

The company interviewed several consultants, including Open Sky Group, to implement Blue Yonder warehouse management (WMS), labor management (LMS), and transportation management (TMS) as well as slotting software in a soon-to-be-constructed, company-owned DC.

An existing facility across the street from the proposed site was already testing the internal distribution concept with modest success. This DC was equipped with a homegrown, Oracle-based WMS, which would ultimately be replaced by the Blue Yonder suite when the new DC was completed. Open Sky Group won the bid based on our deep Blue Yonder experience, proven strategic and technical capabilities, successful product demonstration, and overall cultural fit with the client team.

In September 2019, work began. However, no sooner did the project launch than COVID hit, causing supply chain troubles across the company network, as 3PL after 3PL fell into a pandemic-induced pattern of delayed shipments and work shortages. The transformation project suddenly took on a sense of urgency.

The client’s new Georgia facility was completed in January 2021. The last packages shipped out of the temporary facility on a Saturday and by Monday, the new DC, governed by the Blue Yonder WMS, was in full swing.

To date, the client is directly servicing approximately 12.5% of its total U.S. restaurants, with plans to adopt the successful blueprint in other strategic locations nationwide. Constructed under the most trying of circumstances, the new facility has proven to deliver the enhanced quality and assurance the client desired for its stores.

Since then, Open Sky Group has remained engaged, helping the client uncover new processes to relieve the logistics burden and focus more on providing a superior, in-store, customer experience.

Conclusion:

Open Sky Group’s talented consultants used their deep expertise and skills to help this leading food and beverage client optimize their operations and improve efficiency. By working today, Open Sky Group helped them reduce lead times, increase inventory visibility, and reduce labor costs. The success of this case study demonstrates the value of partnering with a trusted provider like Open Sky Group for the solution to your industry challenges.