“How do you pronounce the capital of Kentucky?” the old joke goes. “‘Louie-ville’ or ‘Lewis-ville’?”
If you remember your geography, you can save yourself a bit of embarrassment by answering, “Neither! The capital of Kentucky is Frankfort.”
Two companies recently remembered their geography lessons and saved themselves a lot more than embarrassment. They saved themselves hundreds of thousands of dollars, thanks to the geographic advantage and logistical expertise of Royal Chemical.
Here are their stories:
“Company X: Frozen Resources”
Company X, a national chain, delivered product from a single manufacturing facility to a network of 20 distribution centers around the country. Those distributions centers then fed hundreds of stores.
The setup was costly:
“Company Y: Trucks Cost Bucks”
Company Y, a manufacturer of chemicals crucial to oil and gas drilling, found itself with lucrative customers in the Marcellus Shale region of Pennsylvania. Yet the company manufactured those chemicals at home in Texas, about 1,500 miles away.
Again, this was a costly setup:
The happy ending
But then Company X and Company Y talked to Royal Chemical and got a geography lesson – and more. They learned that:
So what happened?
Company X: Royal Chemical now produces this freeze-sensitive product across the country at our five plants. We also deliver it, within a day, to the distribution centers. We have slashed transit times and inventory and have eliminated spoiled product. Company X now saves $140,000 in transit costs alone every year.
Company Y: Royal Chemical now produces and ships those drilling chemicals at our Pennsylvania plant, cutting transit time to a few hours instead of a few days. Downtime and outages have been eliminated. Company Y has saved $150,000 in transit costs alone.
Both companies are saving more money, making more money and lowering their inventories. They’ve also let us handle the operations, the packaging, the shipments and the logistics, freeing them up to keep their existing customers happy and find new ones.
Give them both an A in geography. And ask them how to pronounce the best chemical manufacturer in America. They’ll answer, “Royal Chemical.”
Contact us to find out more about how we streamline your logistics.