Inbound transportation cost savings of 21.4%
UTS delivered good news during its first supply chain performance review with an aircraft manufacturer. Through program pricing, mode optimization, carrier rankings, and supplier followup, this client’s partnership with UTS reduced inbound transportation costs by 12%.
But there was more.
A shipment frequency analysis done by our Logistics Analysis department found several suppliers shipping freight three times a week, sometimes more. UTS developed a comprehensive plan to consolidate this inbound freight into fewer, heavier shipments, presented it to management, and collaborated on its implementation.
Result: A net savings of 21.4% on inbound transportation costs.
A Tier 1 automotive supplier achieved a similar result with shipments from 20 key suppliers. These suppliers sent one or two LTL shipments a week to each of the client’s three manufacturing facilities. UTS worked closely with these suppliers to consolidate the shipments onto weekly milk runs.
Result: A net savings of 8.9% on transportation costs plus efficiencies from a recurring weekly delivery schedule.
Inbound Consolidation Opportunities:
- Frequent shipments by same supplier.
- Recurring shipments from suppliers located in the same region.
- Longer shipping lanes that overlap shorter shipping lanes.
- Underutilized warehousing capacity.