You are on page 1of 1

 A major Dry/Frozen Foods manufacturer reduced their overall logistics and transportation

costs by bringing transportation operations in-house and implementing centralized command


and control; and insourcing freight payment to eliminate the third-party service. They
reduced their annual freight bill 19% and their delivered cost-per-case by 17%.

 A major Retail Chain performed a network-wide procurement involving over 200 carriers --
50% were new Network Carriers1. They achieved a 6% savings on TL alone, and that
savings rose to 10% when inter-modal was included.

 A major Beverage Distributor’s disparate transportation networks prevented leveraging their


large shipment volumes and annual transportation spend. They centralized command and
control of carrier procurement, planning, and settlement. They brought freight payment in-
house and implemented selfbilling, which re-allocated five full-time employees in Accounts
Payable who performed manual data-entry and administration. They saved 16% on their
annual freight bill in a two year period.

 A major Bakery Products Manufacturer performed a selective procurement on two locations


that represented 100 lanes. Nearly 100 carriers respond to their RFP; 66% of them were new
Network Carriers. They achieved a 14% annual Freight Bill savings.

 A major Dry/Frozen Desserts Manufacturer that has enjoyed very rapid growth was
employing manual processes to manage order-fulfillment and transportation. Freight costs
were not analyzed or optimized and transportation costs escalated significantly. They
centralized command and control and automated previously-manual ways-of-working. They
implemented self-billing, eliminating their third-party service. They have held their
operations and finance headcount constant while their network expanded (20% per year over
multiple years). They saved approximately 9% of their annual freight bill.

 A major Retail Chain accumulated excessive safety stock as a result of low lead time
dependability from their suppliers. They wanted to reduce inventory levels at their DCs, but
needed to maintain a low level of out-of-stock instances for their stores. They took control of
shipments from their suppliers and the resulting visibility allowed them to reduce stock
significantly without increasing out-of-stock situations. With selected high cube vendors,
they reduced inventory by over 15% while inventory turns increased by 25% -- all while
sales increased nearly 6%! They saved over 10% on their annual freight bill.

 A major Food Manufacturer and Distributor performed a selective procurement as part of a


corporate effort to centralize and standardize multiple acquisitions. They involved nearly 300
carriers; 80% of them were new Network Carriers. They achieved a 6% savings from
procurement alone, and an additional 4% savings from standardizing accessorials.

 A major Manufacturer of Construction Equipment quotes fixed delivered prices as much as a


year in advance -- and the freight cost component can vary over time. They wanted to protect
themselves from significant freight cost increases that resulted from fuel price fluctuations
and other economic conditions. As they grew by acquisition, traffic operations were
assimilated without centralization or process standardization. They implemented a holistic
transportation management solution that consisted of conducting a network-wide rate
procurement and centralizing command and control of transportation. A procurement
conducted for one group yielded a 32% freight bill savings and the overall freight bill
savings is estimated to be 17.5% in the first year!

You might also like