Load Consolidation
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.
Milk Run Engineering
Cost savings of 4.4% as well as higher operational efficiency for stores.
A regional retailer was restocking its stores with LTL shipments from warehouses and key suppliers. Our Logistics Analysis realized that this model was inefficient because LTL shipments deliver at various times during the day, often when the stores were open.
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Warehouse Utilization
Cost savings and recovery of 10,000 square feet of manufacturing space.
A Tier 1 automotive supplier faced a supply chain dilemma. It sourced international material in bulk to keep costs down, but then stored the material in a manufacturing area that was already tight for space.
The client asked UTS for a JIT solution that would deliver smaller quantities on a more frequent basis. However, this would increase sourcing costs more than 20%.
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Carrier Consolidation
Higher operating efficiency by reducing the number of carriers making deliveries.
As many as ten carriers a day were trying to make pickups at a client’s three shipping docks. Adding to the problem was the fact that the pickups usually occurred within a time window of just a couple hours. The result was a lot of overtime pay and missed pickups when carriers weren’t able to wait in line.
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System Integration
"This solution has created more than $3 million in value (and counting).”
A comprehensive and intelligent order management platform helps a plastics distributor thrive in a competitive industry. Right from the start, this client was clear that a customized integration solution was crucial to the success of its supply chain management partnership with UTS.
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E-commerce Integration
Automate shipping rates and fulfillment for any e-commerce platform.
Universal Traffic Service can help you grow online by integrating supply chain management into an e-commerce platform. Customers see shipping options during the buying process and tracking information once orders ship, while you get real-time visibility and control over the supply chain elements of online order fulfillment.
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Network Engineering
Net cost reduced from 11 cents to 8 cents per pound.
Our Logistics Analysis experts achieved significant savings for an automotive parts manufacturer with locations in Ohio and Kentucky. Shipments from key suppliers are now organized into four regional milk runs.
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