Client Success Story

Complete Transportation Management

 

A GLOBAL MANUFACTURER OF EQUIPMENT AND PACKING SOLUTIONS FOR THE FOOD PROCESSING INDUSTRY INCREASES OPTIMIZATION AND FINDS SAVINGS



Client Snapshot

The Client is a manufacturer of packaging solutions, machinery, products, and materials for the food processing industry. Their products deliver value through technology, increased efficiency, and long-term reliability. With distribution centers in the U.S. and abroad, the Client works with food processors across the globe.

The Challenge

The Client’s freight consists most often of large machinery, equipment, and machine parts. The freight is large, heavy, and often time-sensitive. When a customer’s machine needs repair, a halt in production to repair it can cost the customer thousands of dollars every hour, creating a critical need for high-quality expedited shipping. With only a few distribution centers spread out across the U.S., same day delivery to all customer locations requires the use of both air and ground expedited services. With an annual freight spend nearing $750,000, the Client ships on average 1,400 Less than Truckload (LTL), 130 Full Truckload (FTL), and 500 Expedited shipments each year. The Client had developed a strong relationship with a single carrier, who was able to provide consistent quality of service, however freight costs and accessorial charges were high. Additionally, they lacked visibility into shipment trends and spend across locations. With a growing business, the Client needed a partner who could provide both sustained cost savings and visibility into their supply chain.


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The Solution

eShipping’s Supply Chain Analysts conducted an in-depth logistics study, reviewing factors such as freight characteristics, accessorials, distance, direction, rates, and more. The study identified opportunities for optimization and rate savings, and a solution was implemented that focused first on the Client’s LTL freight. A preferred carrier mix was developed that leveraged the Client’s existing carrier relationship, along with strong regional and national carriers to maintain service levels and quality, while reducing overall transportation cost. As part of the carrier optimization strategy, eShipping procured a reduced rate with the existing carrier. eShipManager® TMS was implemented across locations, allowing for real-time rate optimization, accessorial management, and visibility into shipment data. After implementation, performance data was provided to the Client on a regular basis and the solution was expanded to include full truckload and expedited freight.

The Results

As a result, the Client has realized a 19% reduction in LTL freight spend, an 11% savings on FTL spend, and an average 24% cost savings on expedited air and truckload shipments. In addition to cost savings, the Client has benefited from the ingenuity and dedication of eShipping’s operations team. An example of this is when an expedited air shipment was delayed by inclement weather because all flights in and around the destination city had been cancelled. eShipping contacted carriers until one was found willing to pick up the time critical shipment from the airport location in the snowstorm and deliver on schedule. The ability to expedite these types of shipments at a reduced rate without sacrificing the quality of service has helped the Client support their customers efficiently while keeping costs down. The Client has also gained visibility across locations and is able to utilize business intelligence to more accurately forecast freight spend and ongoing needs.



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