A transport analytics and carrier management solution

Client

A leading 5 global automotive parts manufacturer

Background

As the client continued to grow through acquisitions and mergers, they realized they were losing visibility and control of their inbound supply chain processes and requirements. Most of the regional manufacturing facilities maintained their own independent operations and worked independently of one another.

The lack of synergies between facilities was causing high cross dock and cargo handling charges, as well as delays in transit times, underutilized shipments, shipping errors, and unnecessary high levels of inventories and buffer stock stored.

Business case

Rapid growth and lack of visibility into new supply chain processes caused excessive freight costs and a ballooning unsynchronized carrier base.

Scope

  • 5 major carriers across 8 European countries
  • Over 30 inbound manufacturers and suppliers
  • Annual freight spend in excess of $1M
  • Over 2,000 LTL transactions equired annually

Results

  • of total volume designed into direct multi-stop truckloads 60%
  • Reduction of shipment transactions 47%
  • Improved door-to-door transit times by 3 days
  • Flexibility to adapt to changes in size/ complexity without incurring excessive costs

Cost reduction with transport analytics and carrier management

Approach

Leaning on their deep industry expertise, EXL took a three-step approach to helping the client map, analyze and reengineer their back office and operational processes.

First, a consultative method was taken to better understand the current processes, the outcomes and how both could be improved. This step included discussions on the client’s long-term strategy so the necessary tools and technologies could be put in place to support it.

Next, EXL leveraged their analytics capabilities and state-of-the-art logistics engineering software to redesign and optimize the inbound supply chain. This allowed EXL to standardize the related processes, create key metrics in which the new processes  would be measured, and determine a performance benchmark to compare the client to similar companies in the industry.

Lastly, EXL determined the logistics procurement process and current supplier pool needed to be reengineered in order to meet the client’s objectives of increased management control and lowering costs. After the review, a short list of potential carriers was created, which enabled a competitive bidding process for tenders.

Results

Working closely with the client, EXL was able to redesign and implement a new inbound parts and material supply chain function that supported the client’s long-term production plans and overall business strategy. This provided significant business impact to the client and allowed them to be more competitive and responsive to their end customers’ requirements.

  • Reduced overall freight costs by 50%
  • Decreased number of shipments by 47%
  • Improved transit times by an average of 3 days
  • Reduced inventory and parts stocking levels
  • Increased size/complexity adaptability across the supply chain

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