Transportation and supply issues hampering profits and growth? Let's Talk!
Tool Manufacturing Company
Asaph Provides Supply Chain Solutions Improving Operating Cash $8 Million Dollars
Client
A leading North American Tool Storage Manufacturer with sales over $350 million. Their operations consisted of 4 plants (3 in the U.S. and 1 in Mexico), 2 distribution centers, and 23 dedicated tractors with 65 trailers.
Initiative
Contacted by the CFO to provide a transportation network study and a 3-year strategic supply chain plan.
Situation
Recently changed to a new reporting structure, transportation was moved from a customer service function back under a supply chain function. Transportation resources were primarily focused on outbound customer compliance. Their inbound raw material and inter-plant transportation was under a 3rd party legacy dedicated fleet service while their raw material & finished goods transportation network was completely independent. Poor in transit, inventory, and supply chain activity / cost visibility.
How We Helped
Asaph reviewed the company’s end to end supply chain and network and recommended some fundamental changes to increase visibility of spending and reduce costs. We worked directly with the CFO and across all levels of management and operations to implement multi-phased supply chain improvements and provide a strategic supply chain plan. Our activities included:
- Analyzing supply chain network and organization of overall operations
- Establishing a database of providers, costs, and services
- Designing RFP and establishing TMS solution and process improvement
- Implementing customized RFP process for LTL, TL, dedicated and intermodal services
- Leading cross functional involvement of sales, customer service, and supply chain team in new West Coast distribution center.
- Planning and implementing better system to establish in transit inventory visibility
Outcome
- Improved operating cash over $8 million
- Reduced LTL costs 17% and TL costs 24%
- Established new 3rd party West Coast cross dock, cutting 1.5 transit days off raw materials and finished goods.
- Established new TMS technology to manage all inbound, inter-plant, and outbound transportation thus increasing visibility
- Formed master strategic supply chain plan consolidating plant locations