Kenco is one of the nation’s leading third party logistics providers (3PL) managing over 100 facilities and 25 million square feet of warehouse space across North America. Kenco’s core competencies include logistic services, transportation, real estate management and material handling equipment. The Kenco family of companies includes Kenco Logistic Services, Kenco Transportation, Kenco Toyota-Lift, Kenco Management Services, and JDK Real Estate.
Kenco currently provides logistic services for many industry leading, Fortune 100 companies such as Whirlpool, GlaxoSmithKline, Cummins, and General Mills. Kenco specializes in facilities and services for the pharmaceutical, automotive, food, textile, and appliance industries.
The Supply Chain Sustainability Project
The definition of sustainability is evolving. For many firms and organizations, sustainability refers primarily to environmental stewardship. For other groups, sustainability seems to primarily mean actions related to social responsibility. Many of the folks who have worked on the concept of sustainability in the past, have avoided much focus on the financial portion of sustainability and concentrated on the environment and social responsibility.
Kenco’s Supply Chain Sustainability Project focuses on how supply chains and the firms that make up those supply chains can be long lasting. Kenco is exploring alternatives for measuring the carbon (CO2) footprint of our sites. Leveraging the same disciplines used to drive cost and waste out of our operations, Kenco seeks to lower CO2 emissions from our established baseline. Other tools being developed for this initiative include a site sustainability audit and a library of sustainability best practices.
Kenco Logistic Services LLC (KLS), one of the most respected names in the third-party logistics (3PL) industry, has been recognized by INVISTA for reaching an unprecedented warehouse safety milestone.
As of September 13, 2010, INVISTA’s 690,000-square-foot Chattanooga operation managed by KLS had no loss-of-time accidents in 33 years, a significant milestone in the logistics and distribution industry. INVISTA also represents one of the longest-standing customers of KLS, which has been managing logistics operations for the Chattanooga warehouse for more than 40 years.
KLS manages three other INVISTA warehouse facilities, all with excellent safety records, including those in Seaford, Del. (23 years with no loss-of-time accidents), Lyndhurst, Va. (23 years) and Lugoff, S.C. (six years).
INVISTA is one of the world’s largest integrated producers of polymers and fibers, primarily for nylon, spandex and polyester applications. INVISTA’s leading trademarks include LYCRA® fiber, STAINMASTER® carpet, ANTRON® carpet fiber and COOLMAX® fabric, among others. The company is a wholly-owned and independently-managed subsidiary of Koch Industries, Inc., one of the nation’s largest privately-owned companies, based in Wichita, Kan., and represented in nearly 60 countries.
Kenco Logistic Services
“We are proud of this long-term achievement with Kenco, which has played a key role in helping us achieve such a remarkable milestone,” said Lane Baker, INVISTA’s manager, distribution services, North American region.
“Safety is our first priority for the people involved in our operations, but it is also important for greater efficiency, productivity, and profitability… Many of the best practices we’ve learned with INVISTA about working safely have been applied across the Kenco national network,” said Greg Johnson, KLS general manager of INVISTA’s Chattanooga warehouse facility. “Placing a high value on safety is part of our culture, for the benefit of INVISTA and all our customers.”
KLS provides a full range of warehousing services to INVISTA, including storage, inventory fulfillment, repacking, shuttling between plant and warehouse, and spotting trailers. The KLS-managed facilities utilized by INVISTA total 2,311,000 square feet.
Sequencing and Kanban
Sequencing is becoming an integral part of today’s manufacturing world. In this type of operation accuracy is more than important, it’s vital. Kenco Logistic Services can deliver parts to manufacturing operations just in time, and in proper build sequence, as requested customers.
Kenco Logistic Services manages a sequencing operation that provides onsite plant support for Komatsu America, a major manufacturer in the construction equipment industry. They pick parts in the proper sequence and load them onto shipping racks that are delivered to the assembly line in the required order. Sequencing can provide customers with different benefits like maximizing manufacturing floor space, reduced inventory levels, increased productivity and flexibility and more.
In addition to sequencing, Kenco Logistic Services is also utilizing kanban systems at some of its operations. One of Kenco’s most extensive kanban pull systems is operated for Carpenter Technology, a major manufacturer of aerospace fasteners. This program requires Kenco to follow ISO, AS9000, and various material verification and identification processes.
Kenco Transportation has expanded its service offerings by purchasing the well-established freight management and brokerage company Chattanooga Freight Bureau. Effective March 1, the newly formed Kenco Transportation Management d.b.a. Chattanooga Freight Bureau provides a comprehensive range of freight management services to help customers lower freight costs, maintain a high standard of operation and increased profitability.
The Chattanooga Freight Bureau (CFB) was established by area manufacturers in 1904, as a transportation services cooperative. CFB’s creation served to satisfy the manufacturing community’s need for an advocate to lower rail freight rates. With the advent of motor carriage, the organization expanded to include a transportation department that handled all freight issues. In 1959, this group formed a corporation for such services and has been operating ever since as the Chattanooga Freight Bureau.
Turney Thompson, who came aboard in 1978, purchased the Chattanooga Freight Bureau in 1997, and will continue to serve as President under the new Kenco-owned corporation. “This partnership between Kenco Transportation and the Chattanooga Freight Bureau was a natural progression in a long-standing, mutually beneficial relationship,” said Kenco Transportation Vice President Bill Mitchell. “The level of integrity, professionalism and industry expertise was a perfect fit.”
In addition to providing full-scale transportation services, Kenco Transportation Management d.b.a. Chattanooga Freight Bureau will be able to offer the following services: comprehensive freight management services, freight negotiations, loss and damage claim administration, pre-audit and payment of freight invoices, post-audit recovery, transportation brokerage and regulatory services.
“Now, more than ever, we can provide real value-added freight solutions to benefit our customers and their bottom lines,” said Mitchell. With these expanded, complementary services, Mitchell said the merger has already opened some doors of opportunity within Kenco Transportation’s existing customer base.
“With our long-standing history together, mutual respect and similar cultures, the partnership between Kenco and CFB was a natural fit,” echoed Thompson. “It’s a real win-win for the customer.”
According to Thompson, CFB has helped reduce its customers’ freight expenditures by more than $20 million since 1959, saving customers on average 10-15% through its freight management services. In addition, it has returned $1.7 million in loss and claims refunds to its clients. With an ever-increasing demand for greater efficiency and cost-savings, CFB established a brokerage division in 1982. This division has doubled in size the past four years.
“Providing cost-effective transportation solutions has always been the driving goal of Kenco Transportation,” said Mitchell. “Through Kenco’s vast network and these enhanced freight management services, we should be able to help more businesses, on a national scale, better protect their bottom line.”
On being selected as IWLA Chairman, Kenco CEO Mayfield said “I am honored and delighted to have been selected to lead this great organization for the next year,”.
Mayfield brings strong experience to IWLA. Since joining Kenco as CEO in 1999, the company has experienced double-digit growth and is now one of the largest family-owned and privately-held third-party logistic solutions in the United States.