Client:

A well-recognized major manufacturer, importer, and wholesaler of small home appliances with global operations and sales.

Goals and Objectives:

To gain improved control over the outbound supply chain and thereby improve performance in terms of service and cost with the ultimate goal being improved cost efficiency, enhanced outbound order fill rates, and increased customer satisfaction levels.

Challenges:

Major challenges included:

• Current ERP system was relatively weak with respect to freight management capabilities.
• Too much reliance was being placed on human based decisions and manual routing determinations.
• Freight cost optimization was not taking place.
• There was a lack of load planning and a high level of shipping frequency into the same consignee locations over short time intervals.
• Compliance with customer/consignee issued routing guides was poor resulting in a substantial amount of charge-backs being assessed to and absorbed by the client.
• There was poor visibility to pending customer orders which had a negative impact on the overall planning process.
• Multiple warehousing locations were being used and there was the need for process standardization among all facilities.
• A manual freight bill audit and payment process was in place. As a result, there was a high frequency of over-payment to the asset based carriers, a high cost associated with the processing and payment of carrier invoicing, negative impact on overall credit rating, and no access to the related data for the purpose of driving meaningful metrics and KPIs.
• The client did not want to purchase or lease a software solution and they did not want to maintain responsibility for its operation and ongoing maintenance and related cost. Further, they did not want for there to be the need for a “resident expert”. Very simply put, the client wanted the benefits of the solution without the typical related encumbrances.
• Finally, the client was looking for a “Hybrid” solution predicated upon a unique combination of outsourcing, in-sourcing, technologies, and managerial and operational support.

Major components of the solution:

Development of a customized transportation management system with rating technologies and optimization:

In order to gain control over outbound shipments, Land-Link deployed a solution that met the specific needs and requirements of the client.

• The solution was virtually “No Touch” for the client in terms of operation and required maintenance. Customer orders were downloaded automatically and results files were transmitted to remote GUIs located at their various shipping facilities. The client simply used the GUI to properly route their freight based on least cost as well as other constraints and considerations incorporated into the underlying logic.

• The system supported customer issued routing guides that were loaded electronically into the system in order to dramatically improve compliance and eliminate charge-backs associated with misrouting. Routing guide constraints were considered by the logic prior to least cost determination / optimization as applied to existing carrier tariff agreements and base rates.

• In addition, the system also included logic to allow the client to maximize the opportunity to build larger shipments through like consignee consolidation by taking full advantage of the available shipping window based upon order specific requested delivery dates, early ship dates, must ship by dates, and cancel dates.

• The system was fully supported and maintained by Land-Link, and with the implementation of an automated customer order download was virtually no touch for the client. Hence, the client was the recipient of the associated benefits without having to expend any underlying resources.

Outsourced / In-Sourced Hybrid Approach:

While the client relied upon the technologies provided by Land-Link to route and manage their own small parcel and LTL shipments, they chose to outsource the day to day management of volume, truckload, and those shipments requiring special service or attention to the Land-Link operations department. Accordingly, Land-Link operations managed each shipment from procurement of rates via spot quotation through confirmation of final delivery.

Audit and Payment:

Understanding that an effective freight bill audit and payment process was a critical component of and complement to any well executed freight management methodology, the client chose to have Land-Link provide it with a best in class audit and pay process to further augment the transportation management methods, systems, and support that had been deployed. While the client was highly motivated to reduce the costs associated with the processing of individual carrier freight bills and elimination of carrier overcharges, they were also focused on leveraging the resultant data to support advanced metrics, KPIs and reporting deemed critical to the making of sound business decisions. Accordingly, Land-Link established a highly effective database management process that allowed data to be easily mined in order to drive desired measurements.

Performance measurements:

There were a number of Key Performance Indicators and measurements that the client was interested in receiving at regular intervals or upon request. In addition the client also needed to have the ability to gain access to Ad-Hoc reporting capabilities and one-time analytics. Using the data that was collected as a result of the freight audit process, Land-Link provided the client with a number of reporting resources and capabilities including ACCESS Database Reporting, Dynamic Dashboard Technologies, and Ad-Hoc, One-time analyses supported directly by Land-Link analysts.

Service Level Maintenance and Sustainability:

Overall effectiveness of the program was ensured by maintaining close attention to the needs of the client in relation to the ever changing business environment, transportation market-place and demands of the client’s customer base. The flexibility built into the technology and outsourced support processes allowed for necessary changes and further developments to be made as needed in order to maintain the overall effectiveness of the solution and related benefits. Ongoing performance measurements and analyses allowed for evaluation of program results. They also helped identify areas in need of improvement.

Evolution:

Since inception, the solution has changed as needed in order to maintain its viability and value. Over the course of time the services rendered by Land-Link have also expanded in terms of number and in scope. Today, in addition to the technologies, operational support, and freight bill audit, Land-Link also provides the client with:

• Carrier recruitment and rate negotiation
• Reverse Logistics
• Freight Claims Processing and Administration
• Year-end revenue testing
• Freight accruals
• And many other related logistics services.

Results:

All company objectives related to the effective management of the outbound supply chain have been met and continue to be supported throughout time. In addition, as new initiatives and challenges arose, Land-Link and the client were able to combine their resources and abilities, in what has truly been a positive collaborative experience for both parties.