How Georgia-Pacific Cut Shipping Costs by 57% with KBX Logistics

The Challenge

“We didn’t think there would be much opportunity here… but clearly, there is a big opportunity.”

-Jim Lowman, Georgia-Pacific

Georgia-Pacific needed to move specialized, high-volume equipment for a facility modernization project in Halsey, Oregon. The shipments included machinery such as conveyor systems, ductwork, and production lines for paper towel and toilet paper manufacturing. However, costs threatened to greatly exceed the amount budgeted for transportation on the project, requiring a more cost-effective logistics strategy.

In addition to cost, the project involved careful handling. The equipment had to be moved across multiple locations in Wisconsin and North Carolina without delays or damage. Time sensitivity, risk management, and cost control were all critical factors. 

The Solution

Many Original Equipment Manufacturers (OEMs) bundle logistics costs into their pricing, often selecting providers that offer excellent customer service but have little incentive to reduce expenses. This can lead to hidden markups, unpredictable margins, and reduced transparency for buyers. KBX conducted a price review of shipping lanes and trailer types, revealing hidden cost-saving opportunities. By challenging standard rates and negotiating better terms, KBX helped Georgia-Pacific achieve significant savings without sacrificing service quality. 

KBX also directly managed logistics for several Halsey shipments, customizing transportation methods to meet the needs of each piece of equipment:

• Equipment Selection: KBX replaced standard flatbeds with Conestogas – specialty trailers that reduce manual labor, improve load security, and minimize risk. This switch also addressed initial supplier concerns about loading times and product safety after early shipments arrived with torn tarps.
• On-Site Coordination: KBX project manager Lauren Callaway worked directly with suppliers, ensuring smooth handoffs and reducing friction between stakeholders. Her involvement helped manage supplier pushback and improve service levels.
• Risk Management: KBX optimized pickup and delivery schedules, supplied protective materials (tarps, straps, padding), and helped Georgia-Pacific minimize insurance costs by aligning coverage with its self-insurance policy – avoiding unnecessary manufacturer-imposed expenses.

The Results

These efforts led to a 57% cost reduction on conveyor shipments alone. Beyond the cost savings, the solution enhanced operational efficiency, reduced risk exposure, and improved overall logistics execution.

Jim Lowman, a member of the Georgia-Pacific team, shared:

 

“We very much appreciate the support from your team. It is paying significant dividends. When you first reached out, I didn’t think there would be much opportunity here… but clearly, there is a big opportunity, and your team is helping us realize it.”

By challenging traditional shipping methods and fostering collaboration among suppliers, KBX transformed logistics from a budgetary constraint into a strategic advantage. With additional shipping lines planned for later this year, Georgia-Pacific is positioned for even greater efficiency and success.