Case Study:
Global Power Management Company
Our customer is a leading global power management company providing energy-efficient solutions that help their customers effectively manage electrical, hydraulic and mechanical power in five distinct segments: Electrical, Hydraulics, Aerospace, Truck and Automotive. Headquartered in Europe, they sell products to customers in more than 175 countries.
The Challenge
The customer was using multiple logistics providers to manage different segments and divisions of their business including two (2) 3PLs handling NAFTA ground transportation. Their NAFTA network was not leveraged across the organization. Additionally, they owned carrier contracts for 30 core carriers globally; adding a new carrier would be a significant change.
Transportation to the border was done with LTL direct and LTL consolidation points; the LTL consolidation points utilized LTL carrier terminals and dedicated round trips or dedicated one way TL with very low utilization on the TL’s. Many of the round trips were less than 25% utilized for the return trip.
Customer Goals
Cost Reduction Over Current Environment
Maintain Or Improve Operational Performance
Integrate With Current 3PLs
Assess ProTrans’ Ability To Deliver On Analytical Results
Our Solution
Creation of an Account Management Team
LTL consolidation from supply base to border
Implementation in phases:
Phase One: One BU to McAllen, TX Center, validate concept
Phase Two: Complete all BU’s to McAllen, TX
Phase Three: Laredo Corridor
Phase Four: El Paso Corridor
Integration with one 3PL
EDI Communications for Shipment Tenders
The Result
Conversion to SB Consolidation to Mexico Reduced Costs By 26.5% Over LTL Direct Baseline
Program on-time-percentage (OTP) above 97% with 10-week OTP above 99.5%
Program cost running 15% lower than targeted cost
Due to overwhelming success of Phase One, expanding to Phase Two and analyzing Phase Three