Auto & Industrial Power Systems

Asaph Consolidates International Ocean And Air Spend Across Diverse SBU Requirements

 

Client

A Multi-National Automotive and Industrial Power Systems Manufacturing Holding Company with over $1 billion in sales. They had 28 locations throughout North America, Asia, and Europe as well as 12 strategic business units.

Initiative

Contacted by the CFO to increase profitability through international and ocean transportation cost reductions.

Situation

They had limited resources and were lacking international ocean and brokerage expertise. Import and export transportation spend and contracting was decentralized with poor executive visibility of spending and servicing.  Their 12 strategic business units had diverse and different requirements.

How We Helped


Asaph reviewed the company’s supply chain and recommended some fundamental changes to increase visibility of spending and reduce costs. We worked directly with the CFO, CEO, and SBUs to implement multi-phased international supply chain improvements. Our activities included:

  • Analyzing supply chain network and organization of overall operations
  • Creating and implementing inter-division and supplier routings
  • Designing and implementing customized RFPs for import ocean, air freight, and U.S. Customs brokerages services (speed, quality, smart route and cost improvements)

Outcome


  • Over 24% cost reduction of ocean transportation & U.S. Customs Brokerage
  • 31% reduction of air & charter service costs
  • Established visibility solution linked to master planning & inbound/outbound ERP line item status
  • Established vendor compliance routing & complete participation from SBUs

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