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