TLC’s Athens Packaging, located near Atlanta has been in continuous operation for 17 years. A primary and secondary packaging facility in the Kellogg Company network, the 225,000 sq. ft. plant had a distinguished reputation for quality and dependability.

The facility was also under-utilized. While the company needed the capacity, they also needed to reduce costs without compromising quality. After considering various internal solutions including closure, they offered the facility to an outside buyer, preferably a partner that would continue to operate it for Kellogg’s benefit.

Selling the facility, even to a network partner, presented risks. Kellogg wanted not only to shed an asset but to lower their total cost. A new owner would need to increase productivity, maintain quality, and boost utilization. After reviewing multiple offers, TLC was selected. Athens Packaging became part of the TLC manufacturing network in 2004.

The successful migration of Athens has been good for both companies. TLC has driven down landed costs while boosting quality, reducing inventory and expanding capabilities. New customers have been added, raising utilization rates and boosting employment. The result is lower costs for all customers along with increased efficiencies, improved KPIs. Athens is now an essential part of TLC‘s production network, and the premier contract packaging operation in the southeast.

Overcapacity is a major challenge facing customers. While it’s not always possible to create an “Athens”, it is worth considering. By lowering unit costs and boosting utilization rates, TLC re-tasks under-performing assets. By leveraging the needs of multiple customers, we create new supply value.

In facility redeployment TLC is your Supply Chain One.