Vendor Managed Inventory Case Study - Shipper

Business Problem

  • Large number of expedited shipments from customers, increasing distribution costs
  • Low fleet utilization and high levels of forward-deployed inventory
  • Dissatisfied customers
  • Poor visibility of true customer and market demand

Objectives

  • Eliminate non-optimal mode shipments
  • Improve customer relationship management
  • Differentiate from competition
  • Gain a view of true customer and market demand

Process

  • Identify all bulk shipments customers and engage them through commercial team
  • Install TransCore Global VMI on as many silos as possible
  • Obtain long-term contracts from customers in exchange for GVMI service
  • Train customer service and logistics teams on GVMI system utilization

Results

  • Customer inventory levels reduced by 30% on average
  • Nearly all non-optimal mode shipments eliminated
  • Numerous long-term agreements signed with customers

Per Silo Savings:
$46K in Working Capital
$53K in Modal Conversion

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