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Plains Cotton Cooperative turns to TTS for warehousing solution.
Plains Cotton Cooperative had a problem and it wasn't quickly going away. The
Texas-based cooperative was faced with the effect of an industry-wide container
shortage that was impacting their logistics and distribution operations.
The shortage of containers was caused by a declining dollar that has sparked a
buying binge of U.S. farm commodities. In turn, exporters are struggling to
find room on steamships and enough containers to carry all the wheat, soybeans
and cotton to global markets.
Recent statistics prove this to be true. In August, USDA reported grain
shipments by container were up 18 percent for the month and 123 percent year
over year. And while imports in containers are up 3 to 5 percent, containerized
exports have grown by about 14 percent.
Plains Cotton Cooperative is a farmer-owned, cotton marketing and denim
manufacturing cooperative headquartered in Lubbock, Texas. They are the world's
largest producer and supplier of Texas-style cotton and their American Cotton
Grower division is a major denim manufacturer. With the growing challenge of
getting their cotton to market in the face of the container shortage, Plains
Cotton Cooperative turned to Rob Smith and Total Transportation Services to
figure out a long-term solution to their ongoing container issue.
Smith, a long-time transportation and warehousing logistics veteran recently
joined Total Transportation to head up the two-year old company's warehouse
logistic business. His first assignment: Plains Cotton Cooperative.
Plains Cotton Cooperative's processing and distribution was done in west Texas
where the cotton is grown and from there it was shipped to China and other Far
East markets. With this distribution arrangement, the company was fully
dependent on a shrinking container supply in west Texas.
The solution included having a processing, consolidation and distribution
facility closer to a primary container supply source. In Plains Cotton
Cooperative's case, that meant a facility in north Texas, near Dallas. With
Smith's assistance, the company selected a 650,000 square foot facility in
Flower Mound, Texas about 40 miles north of Dallas.
"We worked with PCCA to develop a long-term warehouse and logistic solution
that addressed the market reality with the container supply," said Smith. "It
is far more efficient to bring the cotton in from west Texas to Dallas via
truck, and then transload, process and ship via container."
Right now raw bales of cotton are brought in, processed according to buyer
specs and then ship. Smith says that in the future the cotton will come in
already processed at growing source and ready to ship.
Smith and TTS also brought in warehousing logistics company E*Fill America to
partner with them to handle some of the technology and logistics needs. E*Fill
America is one of North America's largest warehouse companies providing
logistics solutions worldwide from warehousing to technology.
"E*Fill America has done a superb job at providing necessary labor and support
for our operations with this program," said Smith.
On an ongoing basis, Smith and TTS are managing the warehouse program for
Plains Cotton Cooperative overseeing the processing of hundreds of shipments
each month.
The new Plains Cotton Cooperative facility has been operating since November 1
and so far so good according to Smith. "We are thrilled with how well it is all
working and addressing the container supply challenge," said Smith.