Argo spearheaded the transformation of a manufacturer’s Transportation Management System (TMS), driving supply chain optimization from order to delivery. The result was $5 to $7 million in annual outbound logistics cost savings, as well as improved customer service/operating processes.
The client is a wire and cable manufacturer that was relying on decentralized and non-standardized processes, plus inefficient execution impaired by a legacy ERP/WMS systems. As a result, freight expenses had increased and service levels were diminishing.
Argo was engaged to design and implement transportation management system that would increase collaboration with suppliers/carriers, maximize capacity, control freight spend, lower total landed transportation cost, and better serve customers. Other goals were to improve flexibility and global logistics system visibility, as well as to ensure a scalable technology and physical infrastructure, including ways to measure and incentivize performance.
Argo gathered requirements and assessed the client’s order-to-delivery processes and prepared RFI and RFP for system sourcing. We also led the TMS vendor selection process, including contract and pricing negotiation. Reengineering shipping processes at corporate and warehouse included change management and developing best cost designs and sourcing.
The Argo team was able to significantly improve transportation availability while streamlining work processes such as order acknowledgment and entry. Real-time delivery visibility and metrics, along with weekly reports, now make it possible to monitor for each facility’s KPI’s, issues, escalations, and weekly plan.
Further, as part of the software package with vendor contract negotiations, a TMS procurement tool was added at no cost. The tool enables the client to run their LTL/TL carrier rate bids independently, providing greater capacity for scenario management and in-depth analysis. Implementation of the tool for LTL RFQ has resulted in estimated annual savings of $1.75 million.
Argo made rapid implementation possible. The client’s TMS was implemented at the first site in just 11 months, significantly less than the industry average of at least 18 months for TMS implementation at an initial site. The newly negotiated contract for TMS resulted in savings of over $1 million, and there was no budget overrun for the $2 million implementation budget.
Overall project savings will result in $6 million (base case) and at least $10 million (upside) while reducing savings realization time — savings that now can be put toward working capital costs.
Transportation Management Case Studies
Food Manufacturer Cuts Freight Spend by 10 Percent Using Kuebix TMS
Challenge: A large food manufacturer was using an arduous manual process to manage its freight. The company knew something had to change to eliminate extensive paper chasing, faxing, repetitive work and wasted time. But with the high volume of inbound and outbound freight to manage, a time-consuming implementation of a TMS wasn't feasible.[more]
Nobody Thinks About Cargo Insurance — Until $1M Goes Up in Smoke
Challenge: The operations vice president of an oil and pipeline construction company recently admitted there was a time when he wondered if his company’s cargo insurance policy was worth it. The company sources goods from around the world, moves cargo by multiple modes and runs a supply chain through some of the world’s most high-risk countries. Thanks to meticulous packing and some good luck, they'd had very few supply chain incidents over 11 years. Until that summer, a few years back. That June, a truckload of welding equipment heading to Moscow caught fire. The $809,000 shipment was a total loss. One month later, a cargo ship carrying two of the company's containers, worth $150,000, caught fire. Those containers were also total losses.[more]
Leveraging Enterprise Improvement to Mow Down the Competition
Challenge: North America's leading manufacturer and distributor of outdoor power equipment replacement parts experienced rapid growth that brought with it myriad challenges: How could the company continually improve to meet service and growth expectations? How could the company increase productivity to feed increasing demand without sacrificing quality?[more]
Real Time Freight Visibility That Saves Time & Money
Challenge: Holding contracts with over 5,000 carriers that handle a range of brokered and high-value loads, the company tracked loads by making time-consuming, inaccurate and ineffective driver check calls, then manually entered location and status updates for customers.[more]
Diversified Services Provider Saves $15,000 Monthly with MacroPoint
Challenge: Our client, a family of distinct but related businesses involved in a variety of services such as recycling, material handling, and equipment sales, found that 95 percent of loads were never updated about a shipment location, and the other five percent would only be called when an issue arose, and in the majority of those instances it was after the fact.[more]
How to Reduce LTL Freight Costs and Improve Service
Challenge: Dock scheduling, warehouse management, visibility and reporting. Client warehouse and co-packing facilities created disruptions thus increasing costs. Shipment release, scheduling conflicts and regular missed pickups. Lack of ability to manage LTL carrier contracts, manual carrier rates and service metric ranking.[more]
Leading Logistics Provider Closes More Business, Develops Stronger Customer Relationships
Challenge: This global logistics and transportation service provider for the chemical and process industries needed to automate its contract management and pricing process due to a growing volume of customer quote requests.[more]
Eyefreight SaaS TMS Improves Freight Management Efficiency
Challenge: One of the world's largest steel manufacturers seeks to improve the efficiency of its logistics function. The manufacturer faces two key challenges: 1.) An overall lack of efficiency of all outbound freight flows to worldwide destinations. 2.) A manual, resource-heavy process for managing all shipments, associated costs and billing activity from end to end.[more]
Improving Accuracy, Visibility and Efficiency with AT&T Fleet Driver Center
Challenge: Inaccurate driver logs were leading to high CSA scores, occurrence of accidents and speeding violations, and creating time-consuming paperwork for Compliance and Safety staff. Dispatch lacked visibility into vehicles' locations in order to dispatch quickly and efficiently. Aggressive driver behaviors were causing accidents and speeding violations. Paper logs were leading to inaccurate driver logs and High CSA scores. Idling, inefficient routing and speeding caused high fuel spend.[more]
Improving Efficiency and Customer Service with MacroPoint and RTF Integration
Challenge: To provide accurate delivery information to customers and to enhance the quality of its customer service, Mountain Company needed to enable an automated load tracking solution that would provide accurate information without relying on verbal communication.[more]
Challenge: A leading OEM required significant flatbed capacity and more efficient scheduling for transporting frames from supplier to assembly plants.[more]
nxFAST Delivers Innovative Supply Chain Optimization Solutions
Challenge: An industry-leading manufacturing company with multiple suppliers needed greater visibility of actual activity to balance planned activity against operational decisions. To ensure the manufacturing process is not interrupted, containers are often required to be shipped on short notice, and the company needed a way to reduce expedited shipping charges.[more]
Foodservice Company Reduces Freight Spend By 10-15% with Manhattan's TMS
Challenge: Even though growth was on the fast track for one of the largest domestic foodservice providers, they were still hampered by supply chain visibility and accuracy challenges. Without visibility, they had no way of knowing how truckload orders were impacting their entire supply chain, leading to increased costs. The company was also facing substantial increases in commodity prices, fuel and the minimum wage - critical elements in the food and restaurant industries. Complicating those challenges were ongoing limited-time promotions, which require immediate responses to spikes in demand.[more]
Medical Supply Company Uses Buyer's Consol to Simplify Shipments
Challenge: A large medical supply company providing mobility solutions for patients, had multiple product suppliers and several shipment delays due to CFS congestion among other factors. Shipments were often late, and because of the number of LCL shipments, labor costs were prohibitive. After years of frustration, they turned to our company for help.[more]
Big Pharma, Big Vision
Challenge: Through acquisition and a strong development pipeline, this manufacturer grew into one of the world's largest pharmaceutical companies. As a result, its supply chain became complicated and unwieldy. Recognizing the opportunity to streamline its operations and capitalize on low margin products, company leadership prioritized a move to global standardization and shared services.[more]
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