Freight Management Case Study - Service Improvement

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January 31, 2020

Business Problem(s)

  • On-time delivery was averaging about 75%
  • No clear end-to-end visibility or process for transportation execution
  • Lack of communication and following-up with carriers regarding expectations
  • Methods of managing shipment changes and exceptions varied greatly within supplier company as did the roles and responsibilities of personnel
  • Incomplete and incorrect customer master data

Objectives

  • Obtain on-time delivery > 90% within the first 90 days
  • Ensure carriers in routing guide are legitimate options
  • Keep shipper in lower band of cost within routing guide
  • Decrease the amount of brokers used and focus more on contracted carriers
  • When brokers are used, they will be highly qualified and the entire process will be tracked, ensuring 100% compliance

Process

  • Analyzed data and discovered potential root causes of on-time deliveries
  • Made desired modifications to scorecards and reports
  • Established a consistent process for:
    • Managing shipments & pickup and delivery windows
    • Calculating transit times and control modifications for those standards
    • Standard operating procedures, with clear roles and responsibilities
    • Exception management
  • Leverage CarrierPoint solution for tendering, dispatch, scheduling and point of pickup and delivery
  • Continuous monitoring of loads with no carrier secured to determine action required
  • Leverage Transcore's tools to ensure 100% coverage
  • Following-up with carriers to drive on-time pickup and delivery
  • Providing invoice auditing and payment services
  • Providing continuous improvement analysis for cost and service

Results

On-Time Delivery:96%

Savings: $12.4MM of validated (by client's finance team)savings delivered in 10 months.

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