Case Studies
TTG Transportation Management System Success
TTG overhauled the transportation program of a leading global manufacturer, turning acrylics into greenbacks
Assessment
One of the largest manufacturers of acrylic products for multi-use in the world today, our client had based their distribution model on a regional model. As they grew, they found that their LTL program was lacking visibility. TTG analyzed existing freight transportation practices and provided recommendations to reduce both hard and soft costs within the LTL budget.
Objectives
Analysis of the freight and transportation program of a global leader in acrylic production manufacturing, and development of a comprehensive transportation management program including the following:
- Optimize LTL freight flow out of Distribution Centers across eight facilities
- Consolidate shipments to minimize unnecessary expenses
- Reduce bottom line LTL cost
- Reduce soft cost internally over multiple facilities across the U.S.
- Enhance visibility of LTL program within multiple facilities
- Eliminate excess damage to outbound product flow
- Eliminate inefficiencies created via improper use of carriers, modes and routes
Solution
TTG completed a full analysis and implemented a series of initiatives addressing each objective. TTG set standardized criteria for carrier participation to reduce hard cost from the annual LTL spend. Service feedback from multiple departments dealing with the end user was measured, and business was awarded based on feedback from the customer’s warehouse personnel. This process created synergy between all levels of the organization, and completed the first stage of the program execution.
The second stage of TTG’s program implementation focused on reducing soft cost in the supply chain budget through TTG’s proprietary Transportation Management System. The customer’s orders were tactically pre-populated into our web-based system, allowing printing and label production in the warehouse. The customer gained full visibility of their LTL program through one web portal, developing a controlled and efficient transportation program across multiple facilities.
Results
- Overall hard cost reduction of 12% or $500,000 annually
- Soft cost reduction of $300,000 annually
- Carrier compliance improved from approximately 60% to 100%
- Damage claims reduced by 2%
- Customer satisfaction increased by 25%
- Order entry errors cut by 25%