The Challenge
The client, a Fortune 50 electronics manufacturer with a high ranking in the Gartner Supply Chain Top 25, was shipping finished goods on a per-customer, per-order basis to points throughout the Western U.S. from their Texas manufacturing facilities. Shipments could be routed by either the manufacturer or their customers.
This made for a large and inefficient transportation network, with lots of carriers. The trucks appointed by clients often were carrying a lot of air in less-than-truckload shipments.
Given the volume of shipments, tracking them had become complex, draining human resources. Damage and inconsistent service were also regular problems.
The Solution
After assessing the manufacturer’s transportation volumes and destinations, Morgan proposed using its existing, custom freight lane between Texas and Phoenix, AZ as a foundation to optimize the client’s supply chain.
Morgan’s supply chain engineers identified a handful of spots across the country where over 70 percent of the client’s goods were flowing. Using that data, Morgan also designed regular routes between those hubs and their center in Phoenix, ensuring higher utilization and making best use of available cargo space.
In addition to consolidating over 70 percent of the client’s westbound shipments, Morgan discovered a new backhaul opportunity for the client from Los Angeles. The cross-network benefit that this opportunity created compounded even further the time-saving effects of Morgan’s supply chain optimization.
The Results
Morgan solution consolidated the client’s shipments, reducing less-than-truckload hauls to multiple points in the U.S., including Sacramento, CA, Seattle, WA, and Denver, CO. Morgan’s optimized network resulted in:
Serious cost reduction
- Decreased rates on finished goods
- Higher volume discounts
Considerable decline in damage
- Minimal handling of goods
- Maximum control over shipments
- More consistent and reliable service
Increase in manufacturer-routed shipments
- Supports the manufacturer’s revenue-producing logistics
Increased visibility across network
- ChronosCloud app supports end-to-end transparency
Morgan’s custom-tailored approach to supply chain management simplifies the client’s order fulfillment system, leaving them with fewer carriers and improved pricing. The optimization has the added benefit of increasing manufacturer-routed shipments, boosting their revenue even further. Download case study.
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