Professional Documents
Culture Documents
Transportation Savings
Transportation Savings
Transportation Savings
A major Retail Chain performed a network-wide procurement involving over 200 carriers --
50% were new Network Carriers1. They achieved a 6% savings on TL alone, and that
savings rose to 10% when inter-modal was included.
A major Dry/Frozen Desserts Manufacturer that has enjoyed very rapid growth was
employing manual processes to manage order-fulfillment and transportation. Freight costs
were not analyzed or optimized and transportation costs escalated significantly. They
centralized command and control and automated previously-manual ways-of-working. They
implemented self-billing, eliminating their third-party service. They have held their
operations and finance headcount constant while their network expanded (20% per year over
multiple years). They saved approximately 9% of their annual freight bill.
A major Retail Chain accumulated excessive safety stock as a result of low lead time
dependability from their suppliers. They wanted to reduce inventory levels at their DCs, but
needed to maintain a low level of out-of-stock instances for their stores. They took control of
shipments from their suppliers and the resulting visibility allowed them to reduce stock
significantly without increasing out-of-stock situations. With selected high cube vendors,
they reduced inventory by over 15% while inventory turns increased by 25% -- all while
sales increased nearly 6%! They saved over 10% on their annual freight bill.