A common transportation challenge of B2B and B2C businesses is lack of supply chain visibility. Without visibility, deliveries are slower, so inventory management suffers and it’s more difficult to manage risk. These challenges appear because of additional costs and unhappy customers. Also, companies can use 3PL for supply chain visibility.
This PLS client was able to find cost savings, visibility and gain control of transportation:
Without a transportation department, this mining and exploration company decided to look for a strategic partnership with a 3PL because they needed a competitive advantage. Like many companies that outsource, they hoped to gain strategic cost savings and operational visibility that would put them ahead of their competitors.
Most companies outsource to:
1) Acquire experts, knowledge, and resources that are not available internally
2) Let company management focus on core competencies
3) Cut costs and enhance operations
Situation
As a leading mining and exploration company, this PLS client needed to increase visibility into the overall transportation strategy and spend. Therefore, the client relied on vendors to manage the transportation of supplies and equipment for their multiple locations. Since the vendors were arranging and billing the shipments, the client didn’t realize that they were overpaying 15-50% on every inbound shipment.
Solutions
PLS’ account management team analyzed the situation and delivered solutions that would provide lasting results. Firstly, PLS procured highly capable and cost-effective carriers for inbound and outbound shipments. Then, the PLS team evaluated the market and provided insight to the company about best practices, metrics, and performance so they could implement strategic operational changes that would boost productivity and create a more efficient supply chain process. Also, PLS sends this client daily updates on all shipments, segmented by projects, and codes invoices so they can be allocated to the transportation budget. Ultimately, using a 3PL for supply chain visibility was found as a proper solution.
Results
- More than 10% cost savings on LTL shipments, inbound shipments, and truckload lanes.
- Control over transportation processes and transportation spend through detailed cost reports and TMS reports.
- Visibility across all transportation decisions and spend.
- More bandwidth and resources.
- Accurate budgeting based on capital expenditure projects and transportation costs.
Keep Reading:
- How to Reduce Inbound Costs by Tens of Thousands of Dollars
- 3PL Technology Enhances Customer Experience
- Infographic: Success with Visibility
