MANAGED TRANSPORTATION SERVICES: Leveraging a New Logistics Model for Competitive Advantage
LeanLogistics manages daily operations for all locations: consolidation, optimization, carrier selection, and capacity commitments; tendering freight to carriers; monitoring carrier performance; leveraging the network to obtain additional carrier and capacity options; and reviewing unanticipated accessorials and payment anomalies. Rich’s views managed services as the model of the future for transportation solutions, replacing both traditional third-party logistics providers and software solutions. Transportation is now managed with better technology, providing better coordination and control, and at a lower cost. CASE STUDY: ACE Hardware ACE Hardware felt it was an opportune time to put its entire network up for bid. Ace issued a national RFP for transportation procurement and employed LLMTS to provide both the RFP and staff to manage the process. LeanLogistics created the RFP rate structure to meet Ace’s requirements. LeanLogistics also benchmarked its On-Demand TMS® network of over 4000 carriers against the Ace network and identified 400 new carriers that Ace had not used previously. The benefits of issuing a national RFP were threefold–ACE standardized accessorials charges, aligned itself with more (and new) asset-based carriers, and secured capacity commitments across its network. Benchmarking its rates in On-Demand TMS ® allowed Ace to validate and reduce its costs. CASE STUDY: Procter & Gamble Procter & Gamble’s objective was to improve performance on lanes with coverage and capacity problems. P&G implemented the On-Demand TMS ®
Supply Chain Monitor (SCM) and employed an LLMTS project team to implement visibility and best practices throughout its transportation processes. This project team used the SCM to communicate process failures both to P&G and to its carriers throughout the cycle from Carrier Acceptance to Load Delivery. The team identified root causes of issues and recommended process improvements to increase performance, provided proactive communication to P&G Customer Service, and ran daily reports to manage timeline defects. The result was an increase in on-time delivery performance from 94 to 97 percent. CASE STUDY: AEP AEP, a major supplier of plastic packaging
Market-leading MTS LeanLogistics is the leading MTS provider, with its LLMTS offering. This flexible model allows companies to customize their solutions, to gain control and acquire advanced transportation functionality,
film products, determined it could reduce costs in the transportation
payment process by bringing it in-house. This would provide tighter control and eliminate third-party charges. AEP selected LLMTS to transition from outsourced payment to the WebSettle ® component of On-Demand TMS ® . The LLMTS project team consisted of an administrator, a payment coordinator, and a load planner who set-up business rules, planned daily activities, and ensured proper carrier selection and payment. The team also mandated strict carrier compliance to established guidelines and deadlines for submitting accessorials. AEP was able to move painlessly from outsourced to in-sourced settlement. They gained significant control over carrier selection and payment processes, reducing carrier costs significantly. The LLMTS team managed the transition, training the new AEP staff and their carriers. They provided expertise and knowledge transfer that resulted in significant time and cost savings.
and to achieve a competitive advantage.
616.738.6400 www.leanlogistics.com
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