Case Study: Spartan Logistics Partners with NAI Harmon to Purchase Cold Storage RDC in Kansas City
Key Information
Client: U.S. based producer of hybrid agriculture seed
Location: Kansas City, MO
Topline: Locating and opening a contract warehouse in 45 days or less.
The Challenge
There are times when your client comes to you with what they think is an unbearable situation. A large American based hybrid seed company was seeing tremendous growth in their product sales. However, due to unforeseen extreme weather, they stood to lose a quarter of a billion dollars of inventory. If the product was not kept at a certain temperature, it all would have become expired and gone to waste. They needed a specific warehouse solution in a very short amount of time. The warehouse had to be close to their production facilities in Kansas City, so the seed could be properly treated in time. It had to be in an air-conditioned building between 50 and 55 degrees to keep the product from getting too warm. It had to have at least 200,000 square feet in warehouse space to store the all their seed. This whole process from when the problem was recognized to when the warehouse had to be open and transporting shipments had to happen in 45 days or less or else the company would be in danger.
The Solution
The company contacted Spartan Logistics and the NAI Harmon Group with their problem. Spartan had already operated several other warehouses for this company, so they knew that Spartan could provide the right services for them. As soon as they reached out, NAI began to search for a real estate solution in the Kansas City area. A warehouse in Kansas City was located, but there were many steps that had to take place prior to the client operating the building. The proper financing and lease agreement had to be finalized. The warehouse was not air conditioned, so there had to be temporary coolers brought in before permanent coolers could be installed. The utilities in the existing warehouse were below standard, so there had to be major upgrades in a very brief period. There also had to be renovations done inside the warehouse for the client to run their operation smoothly. This includes sealing to prevent leaks, foaming to maintain cool temperatures, and installing new transformers to increase the power supply.
The Result
This whole process, which typically takes six to eight months, was completed on time. The new warehouse received its first shipment just 41 days after the company turned to Spartan and the NAI Harmon Group. They applied an all hands-on deck approach to get this job done for the customer, in which all the company’s 250 million dollars in inventory was saved. It took that partnership between NAI Harmon Group and its commercial real estate services in addition to Spartan Logistics and its third-party logistics services to get the deal done. Spartan currently operates the warehouse, while NAI Harmon Group serves as the property manager of this location. This example from 2018 shows NAI and Spartan’s ability to react swiftly to the customer’s needs with few options.