Large U.S. Chemical Shipper Optimizes Operations with LaneLogixTM from CLX

A U.S.-based global manufacturer of industrial chemical adhesives needed a technology solution to support a major revision in their approach to managing transportation. This shipper has a complex transportation network, leveraging road transport through truckload, bulk truck, and less-than-truckload (LTL) shipping methods.

Client Challenges

This large chemical shipper needed to understand how their dry van truckload transportation costs compared to other chemical shippers in a shifting truckload freight market. They were also seeking a platform to help manage a transportation procurement event that would allow them to optimize their spending through rapid industry shifts and challenges.

The CLX Logistics Solution

The chemical shipper implemented CLX’s LaneLogix to optimize their operations, starting with a rate benchmark on their U.S. dry van truckload lanes. An initial coverage report showed that CLX LaneLogix could provide statistically significant results for 99% of the client’s lanes in scope. Both CLX’s procurement department and the shipper then reviewed these results.

Using CLX LaneLogix benchmarking, the chemical shipper’s truckload dry van spend was 24% above the market average. With this information and an understanding of the volatile truckload market, CLX conducted a truckload bid with quarterly contract rate reviews. The first quarter bid event resulted in 20% projected savings over the baseline, the second resulted in 30% projected savings, and the third resulted in 29% savings. The fourth quarter bid event is currently in progress.

For each of these bid events the shipper was able to:

  1. Standardize and automate freight planning and execution processes
  2. Establish direct and more effective relationships with their carriers
  3. Automate auditing and settling of freight invoices
  4. Optimize the consolidation of small orders into more efficient shipments
  5. Enable management visibility of freight costs and on-time performance
  6. Identify and target opportunities for cost and service improvements

 

Results to Date

After utilizing CLX LaneLogix, the shipper’s projected 12-month cost savings closely matched the 24% savings identified in the benchmark study.

About CLX Logistics, LLC

CLX Logistics is the world-leading chemical 4PL. A seasoned provider of global transportation management, technology, and supply chain consulting services, CLX delivers economic value across your entire supply chain to accelerate success for you and your customers. Download this monumental case study today!

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