Guinness Bass Import Company, a unit of the world's largest spirits company, Diageo, manages the U.S. distribution of Guinness Stout, and several other brands of premium imported beer and ale.
With the company's U.S. market share rapidly growing, Guinness management recognized that the rising volume would eventually tax the existing distribution network. Additionally, management felt that an aggressive supply initiative could improve service levels to distributors while reducing costs per unit.
Having identified specific service and financial objectives, Guinness management sought proposals from numerous logistics providers. Unlike many RFP's, where logistics systems are detailed and providers are requested to bid on components of the system, the Guinness RFP stated the performance goals and requested a logistics solution that would best achieve those goals. More than 25 companies responded to the RFP. After the initial review, Guinness narrowed the candidates to two: the existing logistics provider and Total Logistic Control.
TLC approached the problem in an all-encompassing fashion: "Let's look at everything." TLC logistics analysts conducted an extensive network optimization study, considering all modes of truck and rail transportation from more than 20 ports and 25 distribution facilities. Cross-docking and warehousing options were evaluated for optimum order fulfillment.
TLC proposed a significantly different solution to the problem, requiring a more centralized control of core carriers and port distribution facilities. Performance criteria were more clearly defined, as were geographic service areas. TLC's experience in similar logistic systems allowed the company to establish a higher, yet still realistic, level of accountability among core service providers.
TLC began a pilot program on the East Coast to validate projected cost savings and service improvements. After the rigorous trial period proved successful, TLC was awarded all the Guinness Bass Import business for the U.S.
The TLC logistics team now manages more than 60,000 warehousing and transportation transactions, providing "pier to distributor" logistics throughout the United States. The process also overcomes challenges unique to alcohol beverage distribution — carrier licensing, individual product labels, container volume and even alcohol content are regulated by state government and often vary from state to state.