Developing a comprehensive platform for visibility and results

A market-leader with over 20 manufacturing and distribution centers nationwide, has improved compliance and seen $1.2 million in annualized saving with procurement and optimization efforts.

Client: Industrial wire and cable manufacturer

Challenges

Despite an extensive search for a functional out-of-the-box TMS or a well-suited logistics service provider, the manufacturer didn’t have a comprehensive platform that could overcome its current challenges:

  • The budget and complex custom data integration from legacy systems made other TMS solutions cost and resource prohibitive
  • Absence of an accurate carrier contract management solution resulting in a high level of overspend (deviations from optimal cost routings)
  • Facing GRI’s from highest volume carriers
  • Limited visibility of shipments in transit
  • No solution offering real-time consolidation scenarios or mode shift suggestions
  • Inability to generate accurate reporting for accruals, payables or carrier service performance
  • Lack of on-demand or ad-hoc reporting tools

They turned to Redwood Supply Chain Solutions for help.

Solution

Systems integration and customization

By leveraging our transportation process knowledge, TMS and B2B integration technologies, we were able to quickly and seamlessly integrate multiple data sources and formats into a real-time feed to the TMS, which had been impossible prior to Redwood due to budgetary and resource constraints. Our low-cost, rapid technology integration enabled the client to achieve visibility of its supply chain from the order-level all the way through delivery. The TMS provided ad-hoc reporting capabilities while our analytics experts were able to identify shipping trends and costs, down to the item level. Additionally, our client’s representatives were able to leverage Redwood’s own custom TMS interface to view deficit weight on each load before it ships. This means users were able to identify opportunities to maximize shipment planning and ship more material with no incremental cost and in real-time.

Visibility and reporting

By implementing a highly accurate contract tools, dynamic routing guides, and a full KPI reporting suite, our client dramatically reduced its overspend caused by sub-optimal carrier selection. In addition, they were able to leverage Redwood’s optimization engine to identify consolidation opportunities and take advantage of potential pool points.

Procurement and data analytics

To combat the impending general rate increases, the Redwood team conducted a full scale LTL procurement event. Redwood relies on a proven and strategic approach in the procurement of transportation rates and capacity. By providing complete and accurate data, our carriers are exposed to less operational risk. This allows carriers to provide their most competitive pricing. Since all order, load and invoice data were already flowing seamlessly through our TMS, it was simple for our analytics team to extract and “scrub” the customer’s historical data.

Results

  • With the help of Redwood’s procurement process knowledge, tools and approaches, we helped our customer identify non-compliant routing decisions, identify root causes and ultimately reduce non-compliant routings which previously totaled $500,000 of missed savings annually.
  • Additionally, we delivered a $1.2 million annualized savings through procurement and optimization efforts.

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