Logistics and Transportation Optimization


Manufacturer of Bath & Kitchen Products
Issue: Transportation costs were too high as a percentage of sales cutting deeply into margins.
Solution: Analyzed flows, costs and modes, local and centralized processes in order to optimize for efficiency and service quality. Certain changes were recommended and made to production planning, DC scheduling and the utilization of a company operated truck fleet.  Optimization included structural improvements in transportation planning and use of new or expanded modes (e.g. greater use of rail). In addition systems improvements around functionality were adopted.
Results:  Annualized savings in transportation spend amounted to 17%.

Agricultural Chemical Producer
Issue:  Inbound logistics costs were not totally known or controlled and processes were weak.
Solution:  Analyzed data, studied processes including vendor performance and worked with procurement to identify all inbound costs.
Results:  Developed visibility to all freight costs, revamped processes and procedures, bid out new lanes and collaborated to secure systems support which resulted in a 24% savings.

Major Chemical Company Liquid Bulk Transportation
Issue: New strategy desired for carrier capacity and service guarantees coupled with pricing stability based upon competitive rate schedules.
Solution: Analyzed shipping data, plant requirements, existing contract terms and conditions and pricing to develop a unique approach to carriers that would result in a fair commercial arrangement for both parties.
Results: New contracts reached with key carriers; overall savings potential from RFP was in excess of $7M and participating carriers assured of revenue stream.

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