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.
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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