Situation
This client designs and manufactures home appliances. It planned for a new manufacturing footprint to support sales growth. At that time, the transport services industry was going through regulatory and structural changes, creating upward price pressures, especially for multiple stop and short distance routes.
The client engaged our services to optimize truckload transportation across three business divisions throughout North America.
Solution
Working across the divisional logistics organizations, we helped design the new network and associated business requirements. Several opportunities were identified (e.g. common lanes, backhaul, and improved service windows). Network optimization and strategic sourcing methodologies were implemented to secure services of all business requirements at the lowest cost.
Results
The project generated immediate price reduction of 10%. We also secured ongoing cost reduction commitment from selected providers based on specific improvement programs. In total, the project achieved 15% annualized savings.