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
Customer Testimonial
Circle K
“Being a longtime supporter of consolidation, I have struggled with efficiencies and getting equipment consolidation to work at the level that I know that it is capable of performing at. Having used three different consolidators, it has truly been one of my weakest links in the construction process. I have worked closely with NXTPoint over the past several projects to improve the process to meet my expectations. Through a lot of hard work, I am delighted to say that my last project with NXTPoint exceeded my expectations, and I am looking forward to work with them on my future projects. The efficiency that we had saved the project an estimated two weeks.
Russell with NXTPoint put in a lot of hard work to make sure the deliveries were accurate and complete. All my POs are written so that they have a date that it needs to be picked up by. Russell managed that process for me and communicated what vendors did not meet the contract date. This allowed us enough time to get equipment delivered to NXTPoint. We had four different deliveries and the last two at the end of the project had the bulk of the equipment. I gave Russell a list of what I wanted on the first day and a list of equipment that I wanted on the second day. We had a team on site, including Russell, to receive inventory and identify any damaged equipment.
I felt that it was important to share this experience. I am looking forward to our future projects together.”
