Impact Spotlight
Building a Resilient, Cost-Effective Supply Chain for a Growing National Distributor
Kadima Group executed a full supply-chain overhaul, realigning vendor relationships, expanding the sourcing pipeline, implementing forecasting and logistics dashboards, optimizing warehouse operations, and redesigning inventory controls. This created a more resilient, cost-efficient supply chain capable of supporting the company’s national growth strategy.
A rapidly expanding distributor servicing customers across 22 states faced increasing strain on its logistics and supply-chain operations. The organization relied heavily on a limited pool of vendors, many of whom lacked the capacity to scale with demand. Stockouts were becoming more frequent, freight costs were rising unpredictably, and warehouse labor costs had spiked due to workflow inefficiencies. Without real-time data, leadership struggled to understand where breakdowns were occurring or how to plan for growth.
Kadima Group began by mapping the entire procure-to-fulfill supply chain, identifying vulnerabilities in vendor performance, forecasting practices, transportation routing, and warehouse operations. A diversified vendor matrix was developed, onboarding multiple alternative suppliers to reduce dependence on single-source contracts. This alone reduced risk exposure and improved material availability.
Warehouse operations were then restructured using lean principles. Picking paths were redesigned, receiving processes were standardized, and inventory controls were strengthened through improved cycle counting and slotting strategies. Over a three-month period, warehouse throughput increased by more than 18%, while overtime labor was reduced by nearly 25%.
Kadima implemented a logistics dashboard that tracked key KPIs including on-time delivery, cost-per-mile, carrier utilization, and fulfillment accuracy. This gave leadership real-time insight into operational performance for the first time. Transportation contracts were renegotiated, reducing freight costs by 7–10% through consolidated shipping strategies and improved carrier agreements.
By establishing scalable systems, improving vendor reliability, and building a resilient supply chain architecture, Kadima prepared the organization for its next phase of national expansion. The company emerged with stronger operational discipline, reduced cost volatility, and a supply chain positioned for long-term stability and growth.