Sourcing and Scheduling for Success

RESOURCES // CASE STUDY

One of the fastest-growing paper products and dispenser manufacturers in the North American away-from-home market approached Transportation Insight looking for a solution to several logistics challenges, all of which were directly related to the company’s rapid growth. With six facilities now online and more anticipated to keep up with demand, this client needed a scalable logistics solution that provided total visibility to its vertically integrated network of manufacturing plants and distribution points. The client sought to secure supplemental contracted carrier capacity to ensure transportation availability and to more tightly manage its transportation budget, thus keeping costs under control. Directly related to this challenge, the client lacked internal resources with sufficient logistics expertise and time available to manage the daily tendering and tracking of shipments between facilities and to customers.

The Solution

Armed with information gleaned from a detailed network and needs assessment, Transportation Insight’s Truckload Logistics team conducted a strategic carrier sourcing event aimed at installing sufficient carrier capacity to meet current and future demand. This helped the client avoid leveraging the more volatile spot market to secure trucks. Alongside the carrier sourcing event, Transportation Insight dedicated a member of its Outsourced Execution team to act as an extension of the company’s logistics department. This person filled an immediate need in the execution and management of all shipments in the network, which were predominantly Full Truckload.

Behind the scenes, the Transportation Insight Technology Operations team collaborated with the client to integrate its ERP system with Insight TMS® – the Enterprise Logistics Provider’s modular, scalable, cloud-based Transportation Management System – creating a line of communication through which the ERP transmitted order information to the TMS on an hourly basis. The dedicated Transportation Insight Operations Planner reviewed each order, arranged transportation for each load and tendered the shipments through Insight TMS.

Once the selected carrier accepted the tender to pick up a shipment, the Operations Planner leveraged dock scheduling technology, (shown below) to set a pickup appointment at the client facility. If the shipment was an intra-company move to another facility, the Operations Planner also made the delivery appointment in the dock scheduler.

Once each shipment was picked up, the Transportation Insight Operations Planner tracked it to delivery on behalf of the shipper, working quickly to resolve any exceptions that led to delays or potential missed delivery windows. To ensure accuracy in billing, each shipment was audited against contracted rates through Transportation Insight’s proprietary freight invoice auditing and payment system. If a shipment was invoiced incorrectly, a Transportation Insight business analyst
worked with the carrier on the shipper’s behalf to correct any errors.

To assist the company in the tracking of its key supply chain metrics – for example, on-time deliveries and cost per case per customer – Transportation Insight provided reporting from all data collected through Insight TMS and the freight invoice auditing process. The reporting provided valuable insight to carrier performance trends and overall cost to serve each client.

The Results

Driver wait times due to truck arrival before shipments were ready for pickup were virtually eliminated. In addition the real-time visibility provided by Insight TMS and dock scheduling technologies enabled the company to improve operational planning and reduce non-value-added activity in its production environment. Every facility in the network gained visibility to all other facilities, and the company’s Customer Service team was able to quickly determine the status of any order shipping from any facility. This innovative integrated logistics technology solution, along with ongoing carrier contract management and the expertise and speed of Transportation Insight’s Outsourced Execution team, accelerated the company’s responsiveness to customer demand, raised its productivity levels and solidified its position as a dominant player in its market.

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SUMMARY

Challenge

Rapidly growing manufacturer of paper products and dispensers lacked visibility to transportation moves, as well as the ability to secure capacity and execute shipments between facilities and to customers.

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Solution

Strategically source carrier capacity to eliminate costly spot market moves. Insight TMS technology backed by an expert team to improve shipment tender and tracking, while supply chain reporting enhances cost-to-serve understanding.

Results

Customer with an $8.4 million annual freight spend cut truckload cost-per-mile 9.5% and total freight costs 5.9%. Logistics process administration and cost avoidance realized additional 1.9% savings.

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