Journey Towards Continuous Improvement: Chemical Logistics

In the US, CLX Logistics and a global chemistry company with leading market positions (the Company) have been working together to implement continuous transportation improvement projects— and that program is now expanding to the Company’s European group. In this Case Study, we’re discussing the successes of the partnership and the tools and methodology that will fuel continued success in Europe and other regions.

With more than 100 million dollars in annual logistics spend across all modes and an urge to remain innovative, the Company recognizes that there’s always room for improvement in logistics efficiency. The Company found a strategic partner in CLX Logistics, and together, the companies have focused on increasing efficiencies, cutting spend, and improving transportation performance.

The Company’s 2020 Challenges

Global political environment

How and when should the global political environment and foreign policy influence the preferred location of materials produced? How does this impact the Company’s competitive edge or the way they reach customers on a worldwide scale?

Investment in finished goods inventory and raw materials

How much working capital should be invested in inventory to provide the right amount of flexibility in the supply chain? Should raw materials be produced domestically or imported?

Transportation strategy

As the Company competes in both the commodity and specialty goods markets, how do they leverage the investment in talent and experience to meet the needs of their customers in different transportation markets in different regions of the world?

Keeping and improving a competitive advantage in transportation

Transportation adds no value to products but can be a differentiator in the eyes of the customer. What best practices in transportation across regions ensure that customers continue to enjoy and recognize the delivery of goods as a core competency of the Company?

The CLX Logistics Solution

Greater Visibility

CLX Logistics has one of the largest transportation databases in the industry and is continuously working with the Company to enhance transportation transparency and supply chain visibility. CLX Logistics has provided the Company with greater visibility by providing interactive transportation dashboards for both its Executive and Operation teams.

The global chemistry Company also has access to the CLX Logistics’ Gravity platform. This application significantly improves transportation visibility by combining data from multiple systems within the business with data already available through the BluJay TMS. This application provides a holistic view while simultaneously allowing CLX Logistics to analyze information in a whole new way. As an example, CLX Logistics can integrate customer ABC-segmentation to drive differentiated transportation performance by customer segment. Another example is bringing visibility into transportation spend and performance from disparate systems across the organization.

Performance Targets

CLX Logistics is helping the Company set transportation performance targets that align with their business strategy, which can then be integrated into the interactive dashboards. This service further enhances their ability to identify and prioritize transportation spend and efficiency opportunities.

Continuous Improvement

Continuous improvement in transportation is a journey. CLX Logistics works with many chemical shippers on similar transportation optimization projects. These partnerships allow for a dependable mix of cross-industry experience in analytics and project implementation expertise that’s often difficult to find among 3PL partners.

Analyzing Data

Getting value from raw data can be time-consuming. Often, shippers spend much more time preparing data than they spend on the analysis. Using CLX Logistics’ unique combination of supply chain talent and robust data warehousing and mining techniques, clients spend much more time analyzing rather than gathering and cleansing data.

Results to Date

  1. Consolidating Shipments: For customers that place multiple orders to ship on the same day, CLX Logistics consolidates orders to a single truck, reducing carbon footprint, transportation spend, and complexity for both the Company and the carrier.
  2. Optimizing and Improving Consolidations: This project further expands the Shipment Consolidation program to new ship sites and extends cutoff times for customers with unpredictable, yet high order frequency patterns.
  3. Implementing Dock Scheduling: Through implementing dock scheduling in the TMS, the Company improves can improve scheduling and loading efficiency, and thus reduces carrier detention charges.
  4. Improving Payload: CLX Logistics analysts and the Company leveraged opportunities to optimize truckload shipment weights. This decreased both the cost and CO2 emissions per pound of product shipped.

About CLX Logistics, LLC

CLX Logistics, LLC is a global provider of comprehensive logistics management, technology and supply chain consulting services for a broad base of industry verticals. The global company, with offices in North America and Europe, is dedicated to solving its customers’ most vital logistics challenges by leveraging a broad range of industry expertise, best-of-breed technology and a personalized, high-touch approach to deliver measurable, sustainable value. Download this case study!

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