Managed the Transportation Management System (TMS) selection process for the North American operations of a global consumer durables manufacturer.
Our client sought a TMS with first-class optimization capabilities which would support dynamic cross-dock planning. Ease of implementation was also a key requirement. Chainalytics’ selection methodology balanced the initial IT tendency to select a licensed solution against all of the above considerations and an appropriate TMS was selected and deployed. Better routing and cross-dock planning helped to reduce LTL spend and automating manual tasks also contributed to significant savings.
Optimized U.S. transportation operations of a global beverage manufacturer to balance the use of common carriers with its dedicated fleet.
Chainalytics analyzed our client’s current operations to determine the appropriate fleet size at each of its manufacturing facilities as well as whether a lane should be operated by its dedicated fleet or a common carrier. Additionally, Chainalytics analyzed the sensitivity of the recommended fleet size for a number of factors — including carrier rates, fuel prices, and payload impact. The recommended operational strategy garners annual savings up to $4.5 Million
Rationalized the logistics network for a multi-million dollar regional utility.
Our client required a network study to identify opportunities in merging the supply chains of its three main divisions. The transportation savings that could be reduced with full stocking centers had to be balanced against distributing the inventory to more locations.
Conducted root-cause analysis of a durable goods product distributor’s out-of-region shipping activities.
Classified reasons for out-of–region into ten causal drivers. Controllable inventory categories of out-of-stock and not-stocked contributed to 52% of out-of-region shipping. Analysis identified opportunity to reduce annual transportation costs by $3 to $4 million in freight costs. Established methodology and tools to enable the customer to conduct future analyses on an on-going basis.
Analyzed consolidation of transportation planning across multiple divisions of one of the world’s largest food manufacturing conglomerates.
Chainalytics helped create a corporate transportation planning strategy, bringing several autonomous business units into one optimization process. The analysis included 6 separate private and dedicated fleet operations and over half a billion dollars in transportation spend. Initial engagement analyzed each business unit, separately to establish and validate a baseline model. The analysis then focused on leveraging the fleet operations and common carrier contracts across divisions to identify opportunities for regional and planning and collaboration to reduce transportation spend and improve asset utilization while maintaining customer services levels. The businesses now collectively leverage buying power and transportation assets to better service customers’ requirements while reducing network-wide transportation costs. The client realized a first-year annual savings of over 5% of total transportation costs.
Optimized the transportation planning for one of the world’s largest consumer electronics manufacturer.
Deployed a transportation modeling process for analysis purposes as well as an optimization configuration tool. Trained staff in the transportation department on the use of the application, and enabled them to do their own in-house transportation network analyses. In the process, implemented carrier vehicle constraint planning, where the individual vehicle availability of each distribution center was incorporated into transportation planning. Concluded that there were equipment short falls based on current flows and could not accommodate future growth. The client went on to assess various network changes, and how to configure their own transportation optimization/execution application to manage future network changes.
Modeled, optimized and analyzed North American transportation operations for a global multi-billion dollar medical products manufacturer.
Chainalytics assisted our client in implementation of an internal process for transportation modeling and analysis. The software and process needed to include fleet sizing and deployment analysis capabilities as well as the ability to model common carrier services, consolidation strategies and other complex routing decisions. Together with our client, Chainalytics developed internal processes and trained users to support ongoing an analytical competency.
Developed North American logistics operating strategy for a multi-billion dollar manufacturer of automobile and truck parts.
Assessed the deployment of the private fleet and the $125M common carrier spend. The objective was to reduce overall cost without deteriorating service to its OEM customers. The analysis revealed that the fleet could be reduced and redeployed while the logistics organization needed be increased. In subsequent phases of the project, the client will conduct a procurement optimization exercise and research the market for a new Transportation Management System (TMS). Identified over $20 million in first year savings.
Rationalized transportation operations and assets for a multi-billion dollar manufacturer of consumer durables.
Chainalytics modeled and optimized the transportation operations of our client following a large acquisition of a manufacturer of complimentary products. The team modeled the operations of the newly merged network, including the private and dedicated fleet assets and existing common carrier contracts. After analyzing multiple “what-if” scenarios, testing the viability of several alternatives for fleet sizing and deployment, the team arrived at the optimal solution for leveraging the combined fleet assets of the new company. The scenarios included redeploying fleet assets to new domiciles, new consolidation strategies, alternative service levels, changing cross-docking rules, continuous move routings and more.
Assessed the Transportation Management System (TMS) of a North American office equipment manufacturer.
Our client suspected that there were transportation savings in their distribution network that their Transportation Management System (TMS) was not delivering. Chainalytics was engaged to determine if our client’s TMS implementation could be improved to build lower cost transportation plans and to quantify the expected additional value. Chainalytics was able to quickly identify a few key areas where interfaces into the TMS from external systems were failing and causing inaccuracies in the data. Working with our client to improve the quality of the data as a first step, and subsequently new optimization models were created and additional 3%-6% transportation savings were identified.
Designed and implemented new load optimization strategies for a 3PL (Third Party Logistics Provider) on behalf of their customer, a manufacturer and distributor of consumer electronics.
Chainalytics developed logistics optimization strategies for the distribution of consumer telecommunications devices which resulted in better load consolidations, streamlined operations, reduced freight costs and inventory levels while simultaneously improving service levels by avoiding inventory stock-outs.
Analyzed transportation costs and ran a collaborative bidding engagement for internal logistics business unit of a multi-billion global distributor of durable goods products.
On behalf of the logistics arm of the high-tech distribution company, Chainalytics conducted analyses of transportation costs which resulted in the design and execution of a collaborative bidding process for LTL, Parcel and Heavyweight Air modes. The result of the process was a savings of 10.5% in the first year of the new contracts.
Optimized LTL procurement for a multi-billion dollar industrial products manufacturer with over $40M in LTL spend spread across over 200 US locations.
Faced with the challenge of leveraging the buying power across 5 disparate business units, Chainalytics was able to pull together all LTL freight requirements and issue a single bid package that met the needs for each business unit. The process allowed both regional and national carriers to compete for the business they were most interested in. The carrier base was significantly reduced to a manageable subset of core carriers while achieving double-digit saving on overall LTL freight contract spending.
Optimized LTL procurement for the logistics unit of a billion dollar construction equipment manufacturer.
Collected lane data and analyzed the current state network requirements and identified savings opportunities for consolidating LTL freight contracts with a core group of US regional and national carriers.
Analyzed transportation spend and optimized TL procurement for one of North America’s largest retailers.
Chainalytics helped to manage a bidding event to select best mix of national and regional carriers. The objectives of optimization included reducing total costs across the network, improving service levels and ensuring quality carrier coverage on less desirable lanes. The results 1) netted a significant savings in carrier contracts, 2) improved service levels for their inbound store deliveries and 3) secured additional capacity commitments from quality carrier partners, across the entire network.
Optimized TL and Intermodal spend for one of the world’s largest forest products companies.
The objective was to reduce freight spend on full-load transportation by finding the best mix of carriers, modes, lanes and services. Through multiple rounds of bidding on both modes where loads can be traded-off from one mode to another, arrived at a final double-digit savings of over 15% on freight spend in-play.
Conducted an optimized transportation procurement event for one of the world’s largest food conglomerates.
Chainalytics worked with our client to execute a comprehensive transportation sourcing strategy for dry van freight in North America. The objective was to determine the proper utilization of common carrier service, dedicated fleet assets, and existing private fleet assets. Achieving the optimal mix entailed analyzing the common carrier bids, the dedicated fleet bids, and private fleet costing together in one model instead of separately as is commonly done. This allowed our client to see what areas of the network in which to use the private and dedicated fleets given the new rates that had been collected from common carriers. This not only drove additional savings for the network, but also additional efficiency and utilization of private fleet assets.