Manufacturing

Case Study

Manufacturers must keep pace with consumer demands for product development and innovation. They also face increasing regulation and compliance requirements. One global manufacturer grew rapidly through acquisition, and needed to consolidate its network and maximize the value of their logistics talent. They implemented Navisphere®, TMC’s cloud based technology, and added our logistics talent onsite. As a result, the company gained centralized visibility over their decentralized network. They also significantly improved cost savings, benchmarked their transportation rates, and freed up internal resources to focus on long-term strategies and objectives.

Global acquisitions hindered visibility to total landed costs

After several acquisitions, a global manufacturer obtained numerous warehouses and a decentralized supply chain of over 100 plant locations that operated on different budgets. This company had to support four separate business lines, each with unique manufacturing products and customer bases. Without centralized visibility and information across each location and business line, they could not effectively manage their carriers, reduce costs, and improve service. Nor could they understand their overall logistics performance relative to the market and other manufacturers. To address these challenges, the company chose TMC’s single global transportation management system, Navisphere®, and brought our logistics experts onsite at their corporate headquarters.

Configurable cloud based technology supports divisional needs

Navisphere helped this company obtain visibility, improve processes, and achieve savings. To align more than 500 employees and 6,000 transportation lanes, TMC configured Navisphere by division and supported direct employee usage via the cloud at each plant location. Our onsite team provided operational change management assistance and strategic support in sharing and implementing industry best practices, such as constraint-based bidding and metrics development.

Transportation savings impacts the bottom line

With Navisphere at all locations, the company could automate route guides and implement a standardized accessorial approval process to drive improved compliance and efficiency across their plants. Increased visibility across locations and business lines improved carrier utilization and compliance. Just in time manufacturing leads to a large number of spot market shipments. Through Navisphere, the manufacturer can quickly access their large carrier network, driving savings that impact the bottom line for their own organization and their customers.

The manufacturer used TMC’s expertise and benchmarking capabilities to narrow carriers to a dedicated core group and significantly reduce their freight costs. We conducted load optimization and shipment consolidation scenarios to help the manufacturer improve equipment utilization, improve ship schedules, and maximize truckload capacity. Implementing these recommendations resulted in additional cost savings.

As the company’s technology and processes improve efficiencies, their finite supply chain resources can focus on driving strategy and supply chain improvements. They benefit by collaborating across TMC’s broader customer base, learning best practices derived from shippers in a wide range of industries.