CLIENT OVERVIEW

Who Is the Client?

The client is a well-recognized major manufacturer, importer, and wholesaler of small home appliances with global operations and sales. Their outbound supply chain involves shipping from multiple warehouse locations to a diverse customer base that includes major retailers with strict routing guide requirements and chargeback enforcement.

The primary objective was to gain improved control over the outbound supply chain and improve performance in terms of both service and cost, with the ultimate goals of improved cost efficiency, enhanced outbound order fill rates, and increased customer satisfaction. 

THE CHALLENGES

What Problems Were Affecting Outbound Operations?

The client's outbound logistics operation was underperforming across multiple dimensions. Manual processes, lack of optimization, and poor compliance with customer-issued routing guides were creating unnecessary costs, operational inefficiency, and strained customer relationships.

Manual Routing and Lack of Freight Optimization

The client's ERP system had limited freight management capabilities, and too much reliance was being placed on human-based decisions and manual routing determinations. Freight cost optimization was not taking place. There was no systematic approach to load planning, and shipping frequency into the same consignee locations over short time intervals was high, meaning consolidation opportunities were consistently being missed.

Routing Guide Non-Compliance and Chargebacks

Compliance with customer-issued and consignee-issued routing guides was poor. The result was a substantial volume of chargebacks being assessed to and absorbed by the client. Without a system to electronically enforce routing guide constraints prior to carrier assignment, compliance depended entirely on manual accuracy, which was inconsistent.

Inconsistent Processes Across Multiple Warehouses

The client operated from multiple warehousing locations, each handling outbound shipments with limited process standardization. The lack of consistency across facilities made it difficult to enforce best practices, track performance, or identify systemic issues affecting the outbound supply chain.

Manual Freight Bill Audit and Payment

The client's freight bill audit and payment process was entirely manual. This resulted in a high frequency of overpayments to carriers, elevated processing costs per invoice, negative effects on overall credit rating, and no access to the underlying data needed to drive meaningful metrics and reporting. The absence of reliable freight data meant the client could not make informed decisions about carrier performance, cost trends, or areas for improvement.

Technology Constraints and the Need for a Hybrid Model

The client did not want to purchase or lease a software solution, maintain responsibility for its operation and ongoing maintenance, or require a resident technology expert on staff. They wanted the benefits of a technology-driven solution without the typical encumbrances of ownership. More broadly, they were looking for a hybrid model that combined outsourced support, in-house execution where it made sense, enabling technologies, and ongoing managerial and operational guidance.

THE SOLUTION

How Did Land-Link Solve the Outbound Logistics Problem?

Land-Link designed a hybrid outbound transportation management solution tailored to the client's specific operational model, technology preferences, and customer compliance requirements. The solution combined a customized TMS, outsourced operational support for complex shipments, and a full freight bill audit and payment program.

Customized Transportation Management System with Rate Optimization

Land-Link deployed a customized transportation management system built around the client's specific needs. Customer orders were downloaded automatically into the system, and results files were transmitted to remote GUIs located at each shipping facility. Warehouse staff used the interface to route freight based on least-cost optimization while factoring in additional constraints and business rules built into the underlying logic.

Customer-issued routing guides were loaded electronically into the system so that routing guide constraints were evaluated before least-cost optimization was applied against existing carrier tariff agreements and base rates. This approach ensured compliance was enforced systematically rather than relying on manual accuracy.

The system also included consolidation logic that allowed the client to build larger shipments through like-consignee consolidation. The logic factored in requested delivery dates, early ship dates, must-ship-by dates, and cancel dates to maximize consolidation within each available shipping window.

The entire system was supported and maintained by Land-Link. With automated order download and remote GUI access, the solution was virtually no-touch for the client. They received the benefits of an advanced TMS without the cost of ownership, internal IT support, or a resident expert.

Hybrid Outsourced and In-Sourced Execution

The client used Land-Link's technology to route and manage their own small parcel and LTL shipments in-house. For volume shipments, truckload, and any shipments requiring special handling or attention, the client outsourced day-to-day management to Land-Link's operations department. Land-Link managed each of these shipments from rate procurement through confirmation of final delivery.

This hybrid approach gave the client operational control where they wanted it while offloading complexity and exception management to Land-Link. It also provided flexibility to adjust the division of responsibility as volume patterns and business needs evolved.

Freight Bill Audit and Payment

Land-Link implemented a comprehensive freight bill audit and payment process to complement the transportation management program. The immediate objectives were to eliminate carrier overpayments, reduce per-invoice processing costs, and restore the client's credit standing with carriers.

Equally important, the audit process created a centralized, reliable freight data set for the first time. Land-Link established a database management process that allowed the data to be mined for advanced metrics, KPIs, and reporting. This gave the client a data foundation that had not existed under the previous manual process.

Performance Measurement and Ad-Hoc Analytics

Using the data collected through the freight audit process, Land-Link provided the client with multiple reporting capabilities, including ACCESS database reporting, dynamic dashboard technologies, and ad-hoc analyses supported directly by Land-Link analysts. The client received scheduled KPI reports at regular intervals and had the ability to request one-time analyses for specific business questions.

Ongoing Optimization and Service Expansion

The flexibility built into both the technology and the outsourced support processes allowed for ongoing adjustments as the client's business environment, transportation market conditions, and customer requirements changed. The program has been modified multiple times since initial deployment to maintain its effectiveness and value.

Over time, the scope of Land-Link's engagement has expanded significantly beyond the original outbound transportation management program. Services now include:

• Carrier recruitment and rate negotiation
• Reverse logistics program design and execution
• Freight claims processing and administration
• Year-end revenue testing
• Freight accruals
• Additional analytics and reporting services