The Challenge
A worldwide manufacturer of highly engineered products was challenged by inconsistent patterns in inbound, outbound and intra-company transportation movements. Serving the chemical, industrial, medical, environmental and transportation industries with more than 30 North American locations, the company struggled to achieve an optimized transportation program. In addition to the inefficient practice of shipping multiple times per day from its facilities, the company experienced limited visibility of drop shipments from vendors directly to customers. Continued growth in shipping volumes only enhanced the need to address and rein in these inefficient practices that were becoming a costly supply chain issue.
The Strategy
Through analysis of the company’s transportation data and current processes for sourcing and executing shipments, the team at Transportation Insight developed a thorough understanding of the company’s shipping program. To help the company implement practices to balance transportation cost and customer service goals, the Transportation Insight solutions team calculated multiple scenarios based on a variety of shipping windows.
After the company determined the most favorable scenario, Transportation Insight worked alongside this client to establish acceptable business rules for consolidating both inbound shipments from vendors and outbound shipments to customers. Smooth execution was achieved through close collaboration between the Enterprise Logistics Provider, the client company and its suppliers.
The Results
Using the new business rules, the client achieved annualized savings of $170,000 in the first year. In addition to the cost savings, the transportation solution created more predictable and consistent shipping patterns for the client, aiding in the manufacturer’s time-sensitive planning processes. Considered a success, the client continues to work with Transportation Insight, seeking to replicate the process improvement at other locations within its organization.
