Paper/Packaging

Case Study

The packaging industry is under pressure, thanks to consumer spending, exposure to fast moving consumer goods (FMCG) companies, and increased demand in emerging markets. At the same time, the digital revolution is leading more paper companies to diversify their product portfolio. Organizations in the paper industry must also reduce prices and improve service, in spite of increases in raw materials prices. Paper and packaging shippers need global visibility to understand cost drivers and service impacts, as well as consistent global processes and metrics to optimize their supply chains and lower costs.

Logistics challenges drive the need for change

Before working with TMC, many of our paper and packaging customers experienced poor on time delivery performance, rising logistics costs, limited network visibility, and inefficient tendering and payment processes. While some had centralized carrier rate negotiations, many lacked visibility to route guide adherence. Often, locations handled freight processes differently and manually, calling or emailing carriers. Some customers transitioned their network from a single source carrier to a diversified carrier base, but struggled to benchmark carrier rates and performance and drive acceptance and service accountability. For our global customers, these challenges were exacerbated by language gaps across multiple cultures and time zones. The lack of technology and limited visibility made it nearly impossible to achieve savings through truck utilization and mode optimization.

Reducing costs through visibility and transportation process consistency

With our global Control Tower® locations connected by Navisphere®, our paper and packaging customers have gained full visibility to all modes and supply chain cost drivers. Navisphere’s broad connectivity and availability in multiple languages and currencies improves communication efficiency with global suppliers and carriers. Customers see significant improvements in on time delivery. They can measure factory dwell times, accessorial costs, route guide compliance, and loading accuracy, which enables true landed cost analysis for all products and service improvements. Also, TMC’s rail solution provides visibility to average transit time by lane and corridor, as well as Rule 11 opportunities. Customers can combine and deconstruct their rail-to-crossdock lanes for further savings. TMC optimizes shipments for improved equipment utilization and lower transportation costs; many customers utilize TMC to centrally manage carrier invoices, which also leads to significant cost reductions.

While our local and regional experts handle day-to-day operations, customers have transitioned their supply chain resources from tactical operations to strategic long-term goals and process improvements. Together, we work with customers to develop consistent transportation processes, implement standard key performance indicators (KPIs), and optimize supply chains across the globe.