
Situation: Enterprise had several area locations which contracted for shipping independently for their own outbound product shipments. The use of multiple LTL and courier services added to the congestion, staging, and resource planning complexity.
Finding: Analysis of the product flows and shipment patterns revealed that there were synergistic benefits from consolidating the business with a few selected logistics providers.
Solution: A multi-generational plan was developed using Simplification Principles to reduce the carrier interfaces and then partner with selected key carriers to improve total efficiencies of the logistics to customers. Benefits were identified for both shipper and carrier, and delivered sustainable handling, service, and freight cost benefits.
Result: Hard savings in excess of $2.0 million were generated as well as soft savings from the commensurate freight payment simplification.

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