logistics services and freight management technology - … · 2019. 10. 14. · cloud-based...

[email protected] | 866.275.1407 | www.globaltranz.com

Managed Transportation SolutionClient Success

THE CHALLENGEA Midwestern consumer products company had been using a 3PL for its LTL shipments for several years. While they were comfortable with the 3PL team, the company’s COO and co-founder believed their need for technology-driven supply chain solutions had grownpast what the provider could offer their company.

The incumbent 3PL was primarily a rate reseller that did not provide auto-tendering capabilities or adequate shipment visibility. The client manually tendered loads and then received an email the next morning from the LTL carrier confirming pick-up and the order number. There was no real-time tracking; rather, the client had to log on to each carrier’s website portal to separately pull shipment status data.

In this fashion, the client manually processed 50-60 shipments daily: rating each load, looking at optimum service and cost per shipment, selecting the carrier, then transmitting the information to their distribution facility on the West Coast. This process required two full-time employees to complete each day.

The client delivered to almost every major big box retailer in the U.S., each with their own Required Arrival Date/Must Arrive By Date (RAD/MABD) guidelines. Unbeknownstto our client and due to the lack of shipment visibility, the carriers were often noncompliant with delivery deadlines and were incurring significant chargebacks as a result. Each month, the client received a roll-up of the chargebacks from each customer that represented an additional 15-18% of their annual freight spend. These “surprise” charges significantly impacted our client’s profit margin.

Finally, the incumbent 3PL had received notice from several carriers that a 15-20% general rate increase (GRI) would be levied at the beginning of the year. However, the incumbent provider did not notify the client of this significant cost increase until after contract negotiations for the coming year had begun.

THE BUSINESS WAS GROWING AT 30-35% EACH YEAR AND WAS FOCUSED ON REMAINING A VERY LEAN ORGANIZATION.


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The client went to market with the following strategic goals in mind:

1. Increase visibility into their shipping network2. Create internal efficiencies through auto-tendering3. Reduce total landed costs4. Foster continued profitable growth

THE SOLUTIONGlobalTranz proposed and implemented a comprehensive managed transportation servicessolution that applied our people, process, and technology to help our client achievetheir strategic goals.

GlobalTranz’s initial freight spend analysis showed immediate savings opportunities of nearly 10% were achievable. In addition, GlobalTranz approached each of the incumbent LTL carriers to mitigate the impact of the GRI. We also refreshed the carrier mix to assure the client would receive optimal rates.

We then integrated the client’s enterprise resource planning (ERP) software with our GTZconnect™ transportation management system (TMS) in order to create the necessary visibility into their shipping network and allow for automated load tendering. GTZconnect™ allows for creating customized routing guides that take a variety of factors into consideration for each load. For example, some of our client’s customers require preferred carriers, so the route guide was configured accordingly. For the customers that do not require preferred carriers, the route guide was programmed to assign freight to the least-cost carrier.

The result of introducing auto-tendering and increased visibility is a transportation environment in which intervention is required only for exceptions. GlobalTranz’s representatives closely monitor shipment exceptions, providing daily in-transit reports to the client and proactively intervening as necessary to reschedule deliveries that would likely result in noncompliance charges.

GlobalTranz’s solution also allowed the client to create Voluntary Interindustry Commerce Standards bills of lading (VICS BOL) that have become the standard for many retailers. This newer type of customized BOL provides retailers with more accurate, timely information on the inventory that arrives at their facilities, including different SKUs and line item details as

GLOBALTRANZ’S SOLUTION CREATED COMPREHENSIVE VISIBILITY INTO THE CLIENT’S LTL NETWORK, AUTOMATED ALL TRANSPORTATION PROCESSES, AND

DECREASED COSTS SIGNIFICANTLY.



well as providing a barcode that can be scanned at the warehouse/receiving dock. GlobalTranz’s TMS automatically generates VICS BOLs that are formatted to meet a customer’s specific needs.

In addition to scheduling freight, the client’s two-person transportation team was also responsible for completing freight audits and payments. GlobalTranz implemented a freight audit and payment platform to automate this process, creating savings opportunities by identifying classification errors and erroneous/invalid accessorials. The freight pay and audit platform also allowed for more accurate and efficient accruals by pulling the actual costs for a given shipment directly from the TMS rather than waiting weeks to receive invoices from the carrier.

Business intelligence was another key benefit of GlobalTranz’s managed transportation solution. The TMS provided the means to determine and examine the client’s true monthly transportation costs across KPIs, including lost savings and the total landed costs per customer, shipment, and item. The information gave our client the ability to make strategic decisions to improve their business performance and grow more profitably.

For example, in certain instances the client realized they were losing money on shipments to specific customers and adjusted rates accordingly. In other cases, the business intelligence showed the client was generating higher-than-average margins from some customers. In these instances, the client leveraged this information and approached the customers with discounts in return for higher product volumes, increasing revenue.

GlobalTranz’s managed transportation solution introduced technology, expertise and processes that helped our client achieve its key strategic goals of greater visibility, enhanced business intelligence and operational efficiencies. The GTZconnect™ integration and process automation positioned the client for scalable growth. Even while their volumes increase, the amount of time now needed to manage their transportation process will not. As they grow, adding new manufacturing and distribution facilities to their network will be a simple process. This newfound agility will be key in enabling our client to grow and grow more profitably.



THE RESULTS

Decreased the client’s transportation spend by 45% in the firstyear and 10% year-over-year

Put our team of passionate logistics professionals to work on yourtoughest supply chain challenges.

ABOUT GLOBALTRANZGlobalTranz is a technology company providing award-winning cloud-based multi-modal Transportation Management System (TMS) products to shippers, carriers, 3PLs and brokers. GlobalTranz is leading the logistics software and services market in innovative technology that optimizes the efficiency of freight movement and matches shipper demand and carrier capacity in real-time. Leveraging its extensive independent agent network, GlobalTranz has emerged as a fast-growing market leader with a customer base of over 1 million product users and 25,000 shippers. In 2019, Transport Topics named GlobalTranz the 8th largest freight brokerage firm in the U.S.

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Saved 9% on LTL rates and mitigated the impact of the 15-20% GRI

Virtually eliminated customer chargebacks, totaling a savings of about $35,000 per month in the first year

Decreased administration through auto-tender and simplified the transportation scheduling function from requiring two full-time employees to one hour of monitoring each day

Increased visibility and reporting, including daily reports for on-time percentage by carrier, costs by weight and total costs, and expanded reporting features available for all carriers, vendors, and customers

Created a scalable transportation solution that enables the client’s continued rapid growth and profitability

logistics services and freight management technology - … · 2019. 10. 14. · cloud-based...

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