Case Study #1 : Inbound Transportation Management
In order to meet client objectives, Land-Link implemented a number of processes through the provision of technologies and operational and managerial support designed to operate in unison and provide the client with the intended benefits.
Purchase order file download
Land-Link established an automated download of the client's open purchase order file. The file is downloaded directly from the client into the Land-Link purchase order system thereby improving accuracy and ensuring that all active purchase orders are effectively communicated. The purchase order system tracks all pending orders until released for shipment.
In addition, the system also provides control and accountability relative to blanket orders and multiple releases against such orders. All orders are "aged" from the requested delivery/required ship dates in order to provide enhanced control.
Vendor Management
As an iatrical component of the program, Land-Link authored and distributed an inbound routing guide to all vendors that described the newly adopted routing requirements and compliance expectations. As necessary and in order to meet requested delivery dates for inbound shipments, Land-Link operations contacts all vendors and coordinates product availability and pickup appointments. By doing so, both routing compliance and product availability are ensured. This, in turn, allows the client to successfully support production scheduling and subsequent outbound order fill rates for its customers thereby improving overall customer satisfaction.
Carrier Management
An important aspect of the logistics solution was achieved from Land-Link's efforts in the areas of carrier recruitment and rate negotiation. Land-Link, using its pooled volume, was able to recruit additional reputable carriers and negotiate effective pricing structures in order to drive down freight costs. Once achieved, incumbent carriers also offered reactionary rate reductions in an attempt to secure shipping volumes.
Release of orders and tendering of shipments
As purchase orders are released, they are processed through Land-Link's proprietary least cost routing system for rating, routing, and carrier selection based on least cost and service requirements. Land-Link transmits an advanced carrier notice (ACN) to the carrier, which contains all pertinent shipping information. The carrier signs the ACN and sends it back to Land-Link as testimonial to the fact that they acknowledge the shipment and accept responsibility for execution. The vendor is supplied with an advanced shipping notice (ASN) / pre-load report that provides detailed information regarding the pending shipment. The vendor is also provided with pickup appointments.
All transactions are benchmarked and executed based on least cost in order to provide the client with measurable freight cost savings.
Tracking and Tracing
Land-Link tracks every shipment from pickup to final delivery thereby ensuring the highest level of inbound service. In addition, the client is provided with a daily Control Sheet Report, which serves as a pipeline report of all POs / inbound shipments currently in progress. All shipments remain on the report for 24 hours post confirmed delivery.
Transactional Visibility and Metrics
As part of the program, Land-Link has also provided the client with a WEB based purchase order screen, which allows greater visibility and insight regarding purchase order transactions. This information allows the client to more effectively coordinate purchasing activities with its vendors and also allows the client to be more effective regarding the placement of orders for the purpose of supporting production scheduling.
In addition, Land-Link also provides the client with vendor compliance reporting as well as a number of metrics designed to report freight costs by unit of measure, CWT, etc. Reporting is provided by vendor, lane, etc. On-time pickup and delivery measurements are also provided.
Inbound Consolidation
Understanding the client's need to eliminate dock congestion, Land-Link implemented a daily consolidation of inbound orders. The vast majority of inbound orders are LTL. In order to take advantage of utilizing the services of a number of different carriers based on least cost while at the same time eliminating the number of trucks showing up at the client's facility each day, Land-Link was able to implement a very effective consolidation whereby multiple inbound orders are consolidated onto single truckloads for final delivery into the plant on a daily basis.
International Purchase Orders
In addition to providing the client with the processes necessary to effectively control domestic inbound activities, Land-Link also provided the client with similar control and support relative to international purchase orders. Greater transactional visibility, enhanced management and coordination of international vendor activities, and reduced transportation costs were all achieved.
Results
Through the services provided and collaboration between the client and Land-Link organizations, all program objectives were and continue to be successfully met. Reduced transportation costs, enhanced coordination of vendor activities, elimination of dock congestion, and improved support of production scheduling and the outbound order fill rate were all achieved. The overall result was improved customer satisfaction and operational efficiency.
Objectives / Challenges:
- Reduce the cost of freight associated with inbound shipments of raw materials, components, and packaging
- Gain control over vendor activities and enforce compliance relative to routing and carrier utilization
- Enhance control and visibility with respect to open and active purchase orders
- Eliminate dock congestion
