4 – 8 Weeks
3 – 6 Months
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Industry: |
Global Automotive Supplier
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Company Size: |
1,000+ |
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Project Location: |
United States / Germany
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Problem Statement: |
Our customer, the US plant of a German automotive supplier, had decided to optimize their inbound supply chain to improve transit times and to reduce freight. So far, routings and carriers were selected on a daily, purely tactical basis without following any SCM concept or strategy. As long as sales were strong, freight optimization did not have high prioritization within the US organization. But with signs of declining sales on the horizon, our customer's executive team decided to streamline their inbound supply chain to be prepared for a potential recession and the associated pressure on costs reductions. |
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Meeting: |
Understanding of key suppliers, volumes and routing
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Deep Dive: |
Gather detailed historic and current data on supply cycles, carriers, transportation modes, volumes, weights/dims, transit times, incoterms, customs clearance and freight costs; analysis of 200+ freight invoices
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Hypothesis: |
Streamlining the inbound supply chain and negotiating house tariffs with selected strategic logistics partners will significantly reduce freight and transit times
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Project: |
1 consultants 6 weeks |
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Deliverables: |
New carrier setup without middlemen
Reduction of freight by 31% Reduction of transit times by 28% |
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Bottom Line Impact: |
Annual freight savings >$0.3 M |
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Freight Reduction
