TRANSPORTATION MANAGEMENT

THE OBJECTIVE

  • As one of the largest national healthcare providers, the client sought to ensure that local delivery routes and courier services were being performed in the lowest-cost, most efficient manner

  • Improve transportation routing, ensure efficient utilization of private fleets, ensure best-practice shipment methods, establish transportation cost controls and identify freight costs for recovery opportunities

 

THE CHALLENGE

  • Discovered numerous redundancies and inefficiencies in shipping

  • Private truck fleets were working at 40% of capacity and shipments coming from direct vendors were not being consolidated, resulting in unnecessary labor and shipments

  • Top 10 vendors were overcharging freight by an average of 218% due to contracted savings not being passed to the client and excessive unauthorized accessorial charges being levied

  • Routes being used by the 100 external couriers often overlapped

  • The lack of a centralized control function further reduced visibility of a very complex delivery network, resulting in ongoing operational inefficiencies

 

THE SOLUTION

  • Implemented Roadnet software to optimize fleet routes and resource utilization

  • Implemented Load Control Center (LCC) to ensure transportation cost and control standards

  • Developed internal education program to raise awareness of low-cost practices

  • Consolidation and privatization of courier services

  • Reengineered daily shipment schedules

  • Identified contract freight charge caps

  • Plan for recovery of freight overcharges

 

THE RESULTS

  • Identified savings to the client totaled over $32M in the first year alone

  • By implementing recommendations across 14 converging work-streams, the clients’ disparate transportation resources were streamlined to achieve cost effectiveness without sacrificing quality or service levels

  • Increased efficiency and utilization

  • Simplification of vendor contracts

  • Improved strategy alignment

  • Optimized transportation network

To discuss how our team can help your business identify the problem, recommend a solution and achieve sustainable results, call us at

415-890-2074 or please

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