Headquartered in Cuyahoga Falls, Ohio, Emerald Performance Materials, LLC produces and markets technologically advanced specialty chemicals for a broad range of food and industrial applications. With eight operations and some 750 employees, the company manufactures products that help everyday products last longer or look, smell, taste or perform better. Emerald products are used in aerospace, food, beverages, cosmetics, toothpaste, household products, paint, tires, automobiles, sports gear and many other applications.
Request
Emerald Performance Materials had been handling freight payments in house but was seeking to enhance visibility to its freight costs. It also wanted greater assurance that it was paying carriers at their contracted rates.
Approach
In 2006, the manufacturer engaged CLX Logistics for Managed Services—including Freight Audit & Payment Services. The freight savings from implementing the Transportation Management System technology, CLX Logistics’ Managed Services and the Freight Audit & Payment functionality resulted in a quick payback on Emerald’s investment.
In addition, the company was owned by Sun Capital Partners until August 2014, when it was sold to American Securities, another private equity firm. Having CLX Logistics as a Managed Services partner allowed Emerald to carry the service through the transition and maintain operational consistency as the ownership changed.
Results
For Emerald Performance Materials, CLX Logistics’ Freight Audit & Payment Services continue to support several key business benefits:
- Systematic checks have driven cost savings through identification and appropriate approval or denial of accessorial charges.
- Consistent payments to carriers have led to less “noise” due to late payments.
- Outsourcing Freight Audit & Payment Services to CLX Logistics helped the company enjoy a smooth ownership transition, including consistent service.