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Knoll, Inc.:Customized Solution for Consolidating Outbound Shipments Yields High Marks

 Summary

Knoll Incorporated is a global leader in office furnishings, design and manufacturing. The company wanted to consolidate the outbound shipments of several North American manufacturing plants into one network. This consolidation would allow customers to receive entire orders simultaneously and reduce overall transportation costs. Penske’s solution to develop consolidation warehouses and a unique load plan layout resulted in a ten percent reduction in transportation and warehousing costs and a 45 percent increase in their overall customer satisfaction rating.

Challenges
Solutions / Results
To consolidate outbound shipments of Knoll’s four North American manufacturing plants into a single distribution network.

To maximize Knoll existing infrastructure during an economic downturn with little or no interruption in business.

To increase on-time delivery rates, order accuracy and shipping efficiency to Knoll customers.

 Penske established two centrally-located mixing centers, resulting in a 10 percent reduction in transportation and warehousing costs.

Penske and Knoll devised and met an aggressive 60-day transition strategy for two existing cross-docking and manufacturing facilities.  During this time, Penske moved more than 10,000 products enabling Knoll to maintain productivity levels.

Penske deployed its unique "footprint" loading approach to expedite loading and increase product visibility.  Knoll realized a 45 percent increase in customer satisfaction.




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