Business Issue Addressed
Lack of management visibility and control over transportation performance and costs
By early 2006, our client (a leading medical and dental supply manufacturer and distributor), was experiencing significant challenges in the day-to-day management of their transportation operations. Logistics managers found themselves staring in the face four to six week average lead times for the delivery of their products. On top of that, average on-time delivery rates of 86% were having a negative impact on their customer relationships. These factors, coupled with rising freight costs, high damage rates, and lack of control over carriers, including virtually no real visibility into carrier performance, made matters even more serious. Management decided it was time to rethink their approach to logistics and make changes to the process. Realizing that you cannot manage what you cannot measure, the company set aggressive expectations, which included achieving a 400% ROI for any technology investment, an 8.5% freight reduction in overall freight spend, and significant improvements in routing guide compliance.
Solution: BestTransport’s On-Demand TMS and Robust Carrier Network
After performing an extensive evaluation, our client selected BestTransport’s on-demand TMS solution as their framework tool to provide management with the controls and feedback they needed to achieve the goals they had set for the company.
Results in 2007:
- On-time delivery rates increased 14%, from 86% to 98%
- Average lead times were reduced from 4-6 weeks to 3 days
- Total freight spend dropped 17% in the first year alone
- Return of investment for the project was measured at 800% double their expectations
- In February of 2008, their logistics manager received a promotion to Director of Logistics, and cited our implementation as the major variable for their results