Challenge
Transportation Management Program Design, In-sourcing & System Selection - For $825M manufacturer of water heaters, conducted an exhaustive assessment of their transportation management (TM ) program, including processes, staffing, systems and third-party services.
Approach & Actions
It was revealed that the client could substantially lower costs by “in-sourcing” or taking back TM from a major national third-party logistics provider (3PL). However, it would require TM process redesign, staffing changes and enhanced systems capabilities. Therefore, 3PLR consultants redesigned the TM process from order release to delivery, defined staffing requirements, helped to hire and orient a new transportation manager and supported TM system selection.
Results
In terms of the cost of managing transportation with internal staff verses outside service fees, the client was able to slash expenses from $1.7M to $320k. The TMS was implemented with ROI in 4 months.
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