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APPROACH

We followed the below approach to address this:

  • After process understanding and exploratory data analysis, 4 different scenarios were devised to realize load consolidation opportunity
  • Consolidation scenarios were validated on multiple destination clusters (area codes) to prove the concept
  • A prioritization framework was built to identify top lanes with high savings potential
  • Savings opportunities was computed on all the priority lanes across all modes of load consolidation
  • An implementation roadmap was provided for each lane in order to maximize the savings at the earliest. This roadmap was customized based on lane dynamics including savings opportunity, IT systems and locational constraints.

KEY BENEFITS

  • Load Consolidation: Quantified the benefits of load consolidation by scheduled 2-day and 3-day shipments – Significant improvement over the current process, which was reactive in nature
  • Multiple tiered cost-reduction: We evaluated and proposed additional ideas such as Multi-pick-multi-drop routes and Cross docking as well for Phase II cost reductions
  • Simulation: We built a tool that simulated an entire year of operations of both the companies on these ideas and showed savings in each lane (origin-destination pair). This tool is now being used by the client to make daily decisions and expand in other geographies

RESULTS

  • We proposed a staggered plan of execution over 12 months to realize a total of 13% savings in their overall outbound transportation cost

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