Logistics is the process that ensures that goods or services are available where and when they are needed in good condition and at competitive prices. This post is about Kane, a company who provides third-party logistics services in the United States. It was founded in 1930 and in this is how it helped a global wine brand, to reduce its costs and its product damage.
Kane has grown from humble origins. Edward Kane founded the company during the Great Depression. He traded his car for a used truck to provide local cartage to shippers in the valley regions of Northeast Pennsylvania. Kane has grown organically realizing 2005 revenues of $108 million from a workforce of 1,000 associates. Kane’s quality focus and owner-driven culture make them a good choice for shippers seeking a logistics partner that combines the flexibility and personalized service of a smaller provider with the information systems and capabilities of larger logistics firms. (Armstrong, 2006)
A global wine producer was experiencing high damage rates due to its use of multiple partners for warehousing, packaging and transportation. The company decided to integrate these services with a single company distribution, Kane. The company now manages all distribution services, as well as administration of required tax payments in each state in the distribution area. That solution helped them to reduce transportation costs by a lot and of course, the damage rates. From this small case, we understand how important distribution is, and how a company can fix important costs with a good logistics plan.