Total Logistic Control has been selected by the J R Simplot Co to provide forward distribution center services for the greater Midwest. TLC is providing rail transloading, multi-temperature warehousing, order picking and consolidation, transportation management, and pool distribution services from the company's Rochelle IL logistics complex to the surrounding 10-state area.
The new logistics system has been under development for the past 12 months, before the Simplot acquisition of the Nestlē USA potato processing business. In essence, the new program uses logistics to support Simplot foodservice customers as opposed to warehousing that supports production facilities. TLC is one of five forward distribution centers located in key markets, each serving their respective geographic markets.
Greg Sargis, Simplot's vice-president of logistics, has reversed his ratio of transportation modes from primarily truckload to primarily rail. By moving larger quantities of finished product via rail from production facilities in the Northwest to Rochelle, transportation costs have been reduced. Even though shipment sizes are larger, (the equivalent of three truckloads per railcar), the synchronized flow of finished products, aided in part by a new information system, has allowed Simplot to reduce inventory levels, yet stock the entire foodservice line at the forward distribution center for immediate delivery.