Case Study: Delivering Better Optimizations

overview

Most people think of D.W. Morgan as the company that builds better supply chain transportation networks. For two manufacturing clients, that “better” mentality also helped them optimize technology, overall supply chain strategy and financial results.

You can also listen and watch a video podcast on these two case studies by clicking the link below.

challenge one: optimize technology

A networking equipment manufacturer required lots of manual processes to account for sales, post revenue and compliance. Staff had to check multiple carrier websites, gather information on the shipments they were sending to customers and then enter those details into the company’s own enterprise resource planning (ERP) software. The process worked, but it took too much time and too many costly resources. It also made compliance difficult when the company had to prove deliveries each quarter for financial auditors.

morgan's approach

With more than three decades working in multi-party transportation supply chains, Morgan has deep experience connecting to other carriers. Its ChronosCloud platform includes pre-written connections, or application programming interfaces (APIs) to a large number of the manufacturing world’s most common forwarders, integrators and carriers. ChronosCloud normalizes and connects this information with popular ERPs, such as Oracle and SAP.

For smaller carriers with whom API connections didn’t exist, Morgan’s own technology team had the expertise and experience to create automated connections—working faster and at lower cost than the client could. “Morgan is like our own IT department for supply chain,” the client observed.

the results

As shipments meet their individual Incoterms requirements for delivery, Morgan’s ChronosCloud system recognizes those milestones and automatically retrieves the details.

Even though carriers use different terminology and data fields in their reporting, ChronosCloud normalizes all that information into standard fields and transmits those to the client’s ERP. As a result, client staff no longer have to chase shipment data all over the Internet. It’s all there in one place. So, they know what’s happening at all times—especially during reporting periods when they’re tracking every sale to report revenue.

The formal process of revenue recognition has also been automated by Morgan’s ChronosCloud platform. And, supporting details are stored in a single repository for financial auditors to confirm.

Morgan’s solution saves time and effort, while also ensuring accuracy. And, the automated flow enables future optimizations, like Morgan’s advanced inventory management programs and automated freight payment tools.

challenge two: optimize efficiency

A life sciences client manufactured products and equipment in multiple Asia factory locations for distribution to customers worldwide. To move goods through its supply chain to end customers, they used multiple less-than-truckload (LTL) carriers, freight integrators such as FedEx and UPS and freight forwarders. It was a complex system with a lot of moving parts to manage, a lot of cost and too much handling and unneeded movements that caused damage and delay.

morgan's approach

Morgan’s engagement began by reviewing the data, looking for patterns and opportunities to improve and simplify the client’s transportation network. Analysis revealed a mismatch: Many of the products made in Asia were being shipped to multiple US fulfillment centers and then sent back to customers in Asia. Morgan recommended fulfilling Asia orders directly from the region.

Morgan also advocated a single US distribution point located near the highest concentration of the client’s customers. And,, the Morgan-redesigned transportation network reduced the number of carriers and shipping modes used.

Last, damages were further reduced with standard processes using pallet wrappings and corner guards for all shipments.

the results

The client realized immediate savings by eliminating about a third of its previous transportation. Consolidated routing made goods easier to track, reduced damages significantly and improved fulfillment availability. In some cases, Morgan reduced three or more handling events to a single point.

Morgan’s centralized fulfillment center enabled “zone skipping” and made it possible to reduce rates for last-mile shipping to U.S. customers. The new, efficient supply chain gained the potential for further savings through future outsourced inventory ownership, what Morgan calls “Inventory On Demand,” as well as other inventory financing programs.

At Morgan, the tagline “Seeing better. Delivering better.” really is more than a tagline. It’s a tangible value for the world’s most demanding manufacturing supply chains.

Find Out How We Can Help You Your supply chain is as unique as your fingerprint. It calls for a unique solution that fits your enterprise’s exact needs. If you’re curious to see what Morgan can do for you, drop us a line anytime. Consultations are free.