Supply Chain Optimization

A leading player in the trucking industry faced a significant challenge related to the return of towing equipment to the manufacturing centers after delivering trucks to dealerships worldwide.

The traditional approach of using multiple less-than-truckload (LTL) carriers to pick up the equipment proved to be costly, time-consuming, and frequently missed service. Recognizing the need for a more streamlined solution while enhancing cost savings and operational efficiency, the client turned to Freight Services Managed Logistics division.

FSI’s Managed Logistics team, equipped with in-depth industry knowledge and a comprehensive end-to-end approach, analyzed the clients’ requirements, and devised an innovative solution. Leveraging their extensive network, the MLS team combined their regional warehouses and local loading & unloading facilities across North America to provide local availability with regional consolidation. The MLS team then utilized FSI’s own over the road fleet along with a private fleet to pick up from all facilities and warehouses back to the manufacturer at a much higher service level, lower cost and smoother workflow than previously thought possible. 

In addition to implementing a network of regional warehouses and local facilities, FSI took additional steps to enhance the efficiency of the process. They implemented robust communication channels to ensure seamless coordination between the client, the fleets, local facilities, regional warehouses and the manufacturers. Real-time updates and tracking capabilities were introduced to provide visibility into the transportation progress and ensure timely equipment returns. FSI also handles all documentation and customs requirements, simplifying the administrative workflow across the entire supply chain.

The implementation of FSI’s MLS solution yielded remarkable results for the client. The regional consolidation onto a single truck significantly reduced transportation costs for the client. Instead of dealing with multiple invoices from various LTL carriers, the client now benefits from a streamlined process with a single invoice tying costs to specific products. The 26.3% cost savings achieved through this optimized solution was an immense and immediate financial benefit for the client.

The new approach led to improved operational efficiency and faster turns on inventory by 40%, creating more delivered revenue every month. By leveraging FSI’s network of local facilities, regional warehouses, asset-based trucks and private fleet partnerships, the client experienced total return time reduced by 2.79 days with zero claims for lost shipments. 

The client expressed its satisfaction with the results achieved through the collaboration with FSI. The streamlined and cost-effective solution provided by FSI’s MLS team exceeded the clients’ expectations. The client highlighted the significant cost savings, improved operational efficiency, faster inventory turns creating faster deliveries, and enhanced asset utilization resulting from the optimized end-to-end solution. The client praised FSI’s expertise, proactive approach, and seamless coordination, acknowledging their invaluable contribution to their success in overcoming the challenge.

This case study showcases the significance of supply chain optimization and the positive impact it can have on a company’s financial performance and operational efficiency.