How a manufacturer executed a fast port diversification strategy during port congestion

• Port diversification improved supply chain resilience and positioned inventory closer to end destinations.

• A rapid, coordinated logistics strategy enabled a successful cross-country inventory shift in just 60 days.
• Integrated warehousing and drayage services simplified execution while maintaining service levels and business continuity.

For many years, most imported freight sold by one of the largest retailers in the U.S. hit American shores at the ports of Los Angeles and Long Beach. When congestion worsened at those ports, it impacted the flow of goods to the retailer’s regional distribution centers – and thereby, its stores – in the interior of the U.S.

To get more control over its supply chain, the retailer asked its top 100 vendors to reposition freight so that more of its inventory was stored closer to its distribution centers. This directive meant a large bike manufacturer quickly needed to shift 60 percent of its shipped product from the West Coast to the East Coast.

The manufacturer needed to move more than half of its product cross-country from its warehousing provider in L.A., and it needed to happen in only 60 days. To complicate matters further, the manufacturer did not have anyone on the East Coast to assume the dray and warehouse work once the product arrived.

Schneider, who was familiar with the manufacturer and its business needs, responded to the call for help with a dray and warehouse solution to move the product once it reached the East Coast while meeting the tight deadline. Additionally, Schneider moved several intermodal loads of the manufacturer’s products from the East Coast to balance inventory needs before the official start-up. 

With 330,000 square feet of warehouse available in Savannah, GA, Schneider provided the manufacturer with the storage and dray services to move the product once it reached the East Coast. The warehouse space required was larger than the original footprint, and Schneider was able to provide additional space to accommodate the customer’s needs.

Schneider brought extensive knowledge of the importer's retail system and expertly managed orders throughout the move. The team quickly identified issues, provided exceptional customer service and implemented solutions as needed. Combined, these factors facilitated a successful port diversification strategy.

To complete a successful port diversification strategy, Schneider:

• Moved 3,718 containers from Los Angeles to Savannah
• Provided 333,000 square feet of storage
• In-house dray team provided service that was on time and damage free
• Delivered expert customer service and communication throughout the 60-day move

Faced with a tight deadline to move a large volume of freight, the manufacturer turned to Schneider in its time of need. With proven warehouse and dray experience, Schneider showed it could handle the job and delivered the results the customer needed so that the shipper remained a top vendor with an important customer.