Transportation management system reduces expedited freight by 90% for manufacturer

• Customized transportation management solutions can eliminate costly inefficiencies that off-the-shelf systems often miss.  

• Accurate load planning significantly reduces expedited freight costs. 
• Process visibility and automation improve both service and operational performance. 

Growth was creating new operational challenges for a specialized service and janitorial product manufacturer. An overcapacity warehouse and a non-custom Transportation Management System (TMS) were driving inefficiencies and increasing costs. With a lack of processes and proper load planning in place, pallet estimation was off, rush and expedited outbound shipments were costing upward of $69,000 per month, and platforms such as SAP were new to the manufacturer.

The manufacturer identified a new facility location to help lessen the stress on the existing facility, but it wanted to be sure set-up and processes for all outbound shipments were optimized at the start to avoid ongoing costly issues. Service, the ability to utilize state-of-the-art equipment and cost reduction were top priorities, so the manufacturer knew it needed to move beyond its current carrier and chose Schneider Supply Chain and Distribution Management for a fresh start at its new facility.

The new facility, located in the Midwest, would relieve some of the overcrowding and transit issues the janitorial product manufacturer was experiencing. With a fresh start and a new carrier, it wanted to optimize all processes so they could hit the ground running on day one. 

The manufacturer knew it didn’t want to replicate the processes at the Texas facility, and it wasn’t sure how shipments were being estimated. It also didn’t have any historical data needed for benchmarking a new solution. Schneider got to work to understand its unique business requirements and recommended a custom TMS. 

• That all stores receive orders in a single shipment within two days of placing the order

• An optimized shipping method and load planning across modes (e.g., LTL, TL, parcel) with the lowest cost and following its routing guide requirements
• A return of its completed outbound order document within an hour, so bill of lading (BOL) documentation could be available
• Visibility into the process and all details of transportation
• A quick implementation
• A repeatable process that can flex when the need arises, such as holiday weeks
• Reporting

• Service

• Accurate transit times with high volumes
• State-of-the-art equipment
• DC enhancements
• Reduced rush/expedited shipping costs

Schneider gave the janitorial product manufacturer the flexibility and custom, mid-level solution it needed in eight weeks’ time. For this manufacturer, it is critical that each store location receive one shipment per day containing the whole order because finding the remaining parts of the shipment causes chaos within the transportation department. Schneider’s TMS ensures that the team remains within 3 percent of estimation to actual, keeping the manufacturer’s rush and expedited shipping costs down. 

Following the day-of-week shipping pattern to 180 stores, Schneider received its file from SAP and took care of all the rest without the need for electronic transfers, such as EDI, or middlemen. Schneider got the file back in less than an hour, so the manufacturer could then print all needed BOL documents. 

Schneider provided the manufacturer with a customized transportation management solution tailored to its outbound shipping requirements. With daily visibility into planned shipments and transportation activity, the shipping team could make informed decisions and proactively manage the next day's orders.  

Key results include: 

• Increased pallet accuracy dropped expedited and rush shipping costs more than 90 percent a month.

• Load planning requests were typically handled in 30 minutes or less.
• A custom BOL tool provided the BOL almost immediately. 
• Custom reporting allowed the manufacturer to easily address changes to weight, pallet count and carrier.

Email solutions@schneider.com today to begin.