Tool Manufacturer: Case Study

Lawrenceville Georgia Manufacturing & Distribution Center Receives 38% Savings & Gets Better Carriers Than Before

When we first approached this company they had excellent discounts in place with their LTL carriers, however they were open to ways to find savings.

Since they practiced the six sigma philosophy of finding the most efficient way to do things, the idea of finding ways to simplify, eliminate inefficiencies and save money certainly appealed to them. When we explained our “100% Risk Free Offer” they agreed to a complimentary transportation consultation.

Our original analysis was for 17 LTL invoices showing a 39% savings. This intrigued them to want to do a full study of the prior 30 days. 323 invoices were analyzed with an overall savings of 31% or $10,000.

They next asked us to do a study for their California office for the last 90 days. Considerable savings of over 53% or $34,000 were shown on paper. Remember this was without sacrificing quality of the carriers.

Additional Problems Unearthed

  • Our consultation showed two locations using their own negotiated rates with their local carriers.
  • We found that their individual 60+ branches were calling in their own freight pickups and getting what ever rates they could.
  • Even worse then that they were being hit with assessorial charges left and right.
  • To top it off the freight trucks when delivering to their individual store fronts could not get close to the store due to not having enough room to turn around the truck. This required the only employee to lock up the store and physically break down a pallet and carry it thru the parking lot and load it into their warehouse. When their were clients in the store they had to run and collect the freight and pray that no one shoplifted while the store was unattended. Some of the stores were run by pregnant women. Can you imagine them having to do this alone?

How We Helped Them

We put their freight out to bid and they were ecstatic at what we were able to bring to the table.

  • Overall hard dollar savings of approximately $300,00.00
  • We got them better carrier than before
  • Soft dollar savings were also realized because we negotiated a little forklift on the back of every truck for free so that the truck driver would be able to unload the freight and drive it right into the warehouse while the employee was able to keep the store open. This saved a minimum of 2 hours a week per store manager equating to a savings of  an additional $19,000 a year. Lost revenue due to the store being closed during unloading was eliminated. Shoplifting also declined as a result of this.
  • All assessorial fees were waived.

I wonder how we could impact your organization? If your business has the  “kaisen” philosophy of constant and continuous improvement why not contact us for a free consultation?

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