Supply Chain Case Study: Redwood Saves Kubota 14% In LTL Spend.
In this supply chain case study, learn how Redwood enabled cost-efficiencies within Kubota’s inbound and outbound freight network with a custom compliance integration solution.
Kubota Tractor Corporation (KTC) was established in 1972, with its first tractor being introduced in 1969 before officially filing the company. KTC has since expanded its product line for the US market, now offering products in a wide variety of segments, including lawnmowers, utility vehicles, construction equipment, agriculture tractors, and hay equipment.
KTC is a division of the parent company, Kubota Corporation. Kubota Corporation is a tractor and heavy equipment manufacturer based in Osaka, Japan, founded in 1890.
Kubota was challenged with modernizing its LTL supply chain process for both their inbound and outbound customer freight. Specifically, compliance between their purchasing departments, vendors, and carrier partners contributed to heightened costs and lesser visibility and control over their operations.
Without a tech-forward solution to address their compliance issue, Kubota stood to lose out on cost savings and improved operational processes.
Following an in-depth analysis of Kubota’s LTL network structure and processes, Redwood implemented a custom vendor portal to improve compliance and control over Kubota’s vendors and transportation partners.
Redwood’s vendor portal implementation enabled numerous capabilities for Kubota, previously not possible, including:
- Track and trace for inbound freight with support from Redwood account management team
- Carrier compliance reports for respective shipping lanes
- Robust data analytics reporting on LTL shipping performance
- Quantifiable non-compliance transactions
“Redwood has helped us establish a much better line of sight on our inbound and outbound freight costs,” said Anna Fisk, Manager, Distribution and Logistics, Kubota Tractor Corporation. “For example, Redwood’s portal allowed our vendors to select carriers according to their history and specialty, enabling not only savings compliance, but more visibility in reporting to all levels of the organization.”Anna Fisk, Kubota Manager of Distribution and Logistics
Kubota saved 14% in annual LTL freight spend with Redwood with streamlined freight and compliance processes. With the improved efficiency in compliance and inbound and outbound shipment transportation, Kubota was able to turn their LTL operation from a cost center to a competitive advantage.
“We executed a comprehensive spend management strategy, analyzing Kubota’s existing inbound rates and outbound processes, finding opportunities to reduce costs and inefficiencies,” said Al Toliver, Chief Logistics Officer, Redwood Logistics. “Like Kubota, many clients have hidden freight costs buried within vendor invoices. Our economic analysis digs out these costs and discovers opportunities to save money by changing terms and taking advantage of lower freight costs.” Due to Redwood’s vendor portal integration success, Kubota tapped Redwood to serve as a consultant on spend management and operational processes, with their respective advisory partners for its parcel division.Al Toliver, Redwood Chief Logistics Officer
Due to Redwood’s vendor portal integration success, Kubota tapped Redwood to serve as a consultant on spend management and operational processes, with their respective advisory partners for its parcel division.
To read more about how Redwood has helped its customer base save on transportation spend, visit our supply chain case study page. If you’re ready to get in touch with us on how we can help you with freight spend savings, drop us a line and a freight specialist will get in touch with you.