Our client faced a number of internal logistics challenges including:
- Lack of transportation and technology centralization across divisions in the U.S. and Canada
- Inability to manage multi-division transportation projects from a central point of control
- No existing consolidated carrier base due to fragmentation of gradually acquired divisions
- Inability to centralize transportation procurement, causing network-level and load-level inefficiencies
- Lack of expertise to perform a formal multimodal bid across existing and new carriers
- Absence of any tools for interdivision consolidation or pooling considerations
One of their largest non-production costs was transportation and looked to us to help them drive value for their extended enterprise.
Seamless data integration and visibility
To monitor and control the client’s in transit activities and freight costs, we seamlessly integrated the client’s multiple ERP platforms with our TMS with modern systems integration tools, industry experts and process excellence. We also provided additional visibility through our TMS contract management and invoice audit tools, as well as ad-hoc reporting to identify overspend.
Procurement and analytics process excellence
The procurement success is based in our data-centric approach, combined with strong carrier relationships.
Redwood’s TMS data capture enabled us to provide carrier partners with quantifiable freight awards and reliable volume expectations. Our analytics team cleansed and unified their once complex, non-uniform data sets, so we could leverage their combined enterprise’s transportation spend data across multiple facilities. This increased their buying power by limiting the final carrier base and encouraging winning carriers to reduce rates further. Leveraging the data, we included location-specific freight details, enabling carriers to submit pricing in accordance with unique freight needs. We analyzed submitted pricing and recommended carrier award strategies by showing them in real-time the impacts of freight distribution changes.
Best-in-class transportation management
With their newly acquired pricing completed, our freight management team leveraged the TMS optimization engine to identify consolidation opportunities and take advantage of potential pool points. We identified the most efficient shipping method, mode and re-distribution points on all shipment, facilitating a once-fragmented North American network shift to a centrally managed, highly cohesive operation.
The office products supplier enjoyed increased technology capability, control and savings due to the customized and self-funding transportation solution we created. As a result of our procurement efforts and comprehensive transportation data, our customer:
- Realized direct procurement gains across their North American network of over 10%
- Saw an additional 7% of realized savings because of added visibility and optimization tools