Convenience Redefined: Reducing Product Damage and Loss For Circle K

Challenge

Faced with many losses from frequent package damage and missing items, Circle K sought a resilient 3PL logistics solution to avoid these costly incidents and streamline their logistics operations. The convenience store chain relied on warehouse management from multiple vendors, shipping products to general contractors, site managers, and installers without adequate visibility along the journey. Disengaged supply chain communication led to a critical oversight, leaving their newly renovated stores without essential products.

As the most widely recognized convenience store brand providing millions of consumers globally with everyday necessities, Circle K’s ability to effectively serve customers is contingent on addressing critical vulnerabilities in their supply chain. Inconsistent inventory and delayed deliveries were threatening their promise of quick, reliable service. For their future projects, including a seven-store remodel in the Great Lakes region, an efficient supply chain strategy would prioritize enhanced product care, real-time inventory visibility, and expedited delivery to ensure smooth operations and satisfy customers.

Solution

As a trusted logistics company with deep resources and a nationwide 3PL warehouse network, NXTPoint Logistics aligned with Circle K’s goal of having warehouse access near their stores. In addition, our innovative warehouse management software, Körber One, boosts inventory visibility and control, retiring their dated process of reaching out to vendors via phone for updates into product levels.

NXTPoint’s pilot project with Circle K consisted of upgrading seven stores with new equipment and furnishings, such as freezers, hot food appliances, graphics, lighting packages, and more. From coordinating procurement with multiple vendors to order fulfillment, NXTPoint helped simplify Circle K’s supply strategy through consolidation, taking complete control over every touchpoint along the journey. To minimize damage, merchandise received special handling and underwent thorough inspections at each handoff, including when pallets arrived at the warehouse. Effective communication with onsite project managers ensured efficient order picking, packing, and timely delivery. This meticulous approach reduced risks and optimized the entire logistics chain, from reception to final mile delivery. 

Results

Seven Circle K stores across Ohio were successfully remodeled with no missed deliveries, loss pallets, or damaged merchandise. This flawless execution demonstrates our commitment to precision and reliability in large-scale remodeling projects.

Facts

• Timeline: Sept 2023 – April 2024
• Great Lakes region
• 7 convenience stores
• 200+ pallets moved
• No damages or missed deliveries

Services

• Warehousing and distribution
• Consolidation
• Final mile delivery
• Inventory Management
• Project Management