This company manufactures protective paints and coatings for home and industrial use, and sought a solution to integrate its suppliers into the process of managing inbound transportation.
Since 2008, the manufacturer has used the Kewill-Transport Transportation Management System (TMS). Historically, it would provide vendors with a route guide to select carriers for shipments inbound to manufacturing, and it was up to the vendors to call the carriers manually. However, vendors often opted for the wrong mode and/or carrier, resulting in excess costs. At the same time, the legacy approach was causing the firm to miss opportunities for load consolidation.
In 2014, the company initiated a project to streamline and optimize planning and execution of supply from vendors. More specifically, it looked to enable vendors to provide necessary shipment details (actual weights, dates, and shipping locations) in order to facilitate load optimization and planning within the Kewill-CLX transportation solution.
The manufacturer opted for an approach that combines EDI communications, a Vendor Portal, and the Kewill-Transport TMS. In doing so, it addressed all of its major requirements. Vendors are able to provide accurate ship dates, to identify (and capture any changes to) ship-from locations, and to provide shipment quantities. The company is also able to leverage its TMS to optimize inbound shipments through:
- Load consolidation across multiple pickups.
- Optimal carrier selection and booking.
- Shipment tracking.
- Alerts when exception events occur.
The customer’s new, combined solution went live in 2014, and the company is using it throughout the enterprise—targeting the vendors that account for the lion’s share of inbound shipments. By embracing the new solution, the company is enjoying these key results:
- Lower transportation costs.
- Reduced requirements for “safety stock” (held in case of late shipments).
- Fewer interruptions to production schedule due to late shipments and/or unexpected shortages on shipments.
- Automation of the transportation planning process.