Success in this industry demands more than understanding consumer preferences, increasing reach, and driving new product innovation. It also requires collaboration to achieve on time delivery, avoid out of stocks, and ensure a product is there when the consumer arrives to purchase it. A large consumer packaged goods company collaborated with TMC to transform their transportation management strategy, implement Navisphere® technology, and integrate process improvements and industry best practices. By doing so, they improved customer service, gained visibility into cost drivers, and increased their sales while scaling their business through acquisitions.
Transforming the supply chain with a controlled logistics strategy
This customer wanted to control their transportation network as they changed their distribution network strategy. They transitioned from 100% brokered transportation and live loading to a shipper managed, asset based carrier strategy. They also built a new 215,000 sq. ft. distribution facility. Transitioning to this new environment required support for change management and TMS technology that could provide visibility to service exceptions and cost trends, automate processes, and quickly enhance daily carrier communications. Over three months, TMC worked with the company to implement Navisphere, expand their carrier base, migrate from a legacy freight payment service, and introduce new shipping processes. As a result, they could make fact-based cost and service decisions to manage their new carrier base and service their customers more effectively.
Arrival date compliance improves customer service and drives sales
Successful companies in this industry must comply with on time delivery requirements. For this customer, we set delivery appointments before tendering truckload shipments to carriers. With greater reliability, the company was able to obtain appointments for product delivery based on when their customers expected it. These shifts in process improved on time delivery and overall customer relationships. Penalty fees declined. The company is now considered a valued supplier who is consistently included in customer promotions, which makes new item introductions and buyer access easier for the company’s sales teams.
Gaining deeper insight into transportation spending with business intelligence
As freight payment processes were integrated with transportation activities, the company gained greater visibility to their transportation spend. TMC’s business intelligence tools, reporting, and metrics allow the company to better understand how cost per hundred weight (CWT), shipment volumes, and modal breakdowns relate to profit and loss reporting.
The implementation of Navisphere, along with a collaborative approach to process improvement, has allowed the organization to successfully manage scale as they’ve grown. Acquisitions and divestitures have occurred, and TMC has flexed personnel and integration support. That means our customer requires less IT support, yet experiences a seamless, efficient transition.