filter-solution-transportation-management

For retailers, keeping shelves stocked with the right products at the right time is crucial for maintaining customer satisfaction and maximizing sales. Disruptions in the supply chain — whether from delayed shipments, inefficient transportation or mismanaged inventory — can lead to empty shelves, missed sales and frustrated customers.

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As various forms of uncertainty and supply chain congestion continue to disrupt trade flows, the specialized logistics skills and infrastructure required to manage cross-border freight continue to be tested as never before.

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Amid a significant merger, a food and beverage ingredients manufacturer faced the challenge of centralizing transportation management processes across business units to control costs and improve efficiency.

With over 30,000 employees and 340 locations across 60 countries, the manufacturer outgrew their previous logistics partner and sought a new partner capable of managing their diverse supply chain needs while also accommodating growth.

Process discipline was a critical component from the very beginning due to the complexities of the merger and the manufacturer’s business model. This included a thorough assessment by Penske Logistics of all trucking carrier sourcing and management needs and a comprehensive rate audit and negotiation to identify potential savings opportunities.

The manufacturer welcomes challenges posed its by customers, but they don’t take chances on their business operations. Meticulous attention to detail is vital for efficient operations, cost-effectiveness and optimal performance in logistics and supply chain management. Penske stepped up to provide the necessary expertise and support to launch the first business unit on an expedited timeline of 90 days.

Navigating a Lot of Supply Chain Change All at Once

Transitioning to a new freight management and supply chain partner presented significant exposure and risk to continuity of service for their customers, especially when it came to establishing new processes regarding contracting and compliance with their previous carrier base. It was critical that there was no lapse in service to their customers or current operations. With this level of expectation, Penske had to demonstrate its ability to add value and earn trust through communication, planning, discipline and project execution.

To ensure a smooth and timely transition without disruption, the right approach was vital. Penske first conducted a thorough Value Stream Mapping exercise to fully understand the business intricacies and discover opportunities to standardize key processes. This approach unveiled specific improvement areas related to carrier management, centralization of systems across business units and overall process management.

Carrier Management

Through disciplined planning and procurement, Penske optimized freight movement, synchronized lead times and managed all carrier interactions, enhancing the manufacturer’s network reliability and reducing costs.

As a customer, the manufacturer benefited from Penske’s carrier management expertise and vast network of qualified carriers. The client requested to transition their existing carrier base, so Penske qualified them, established contracts and negotiated rates on their behalf.

Making an impact from the start, Penske introduced a $1.1M estimated annual savings within the first 90 days through a combination of rate reductions, routing improvements and better carrier selection.

A strategic partnership with Penske Logistics added value to the customer’s operations. With Penske assuming responsibility for carrier management, the client was able to shift focus to core business activities.

Centralized Systems and Increased Visibility

Historically, the manufacturer grew through acquisitions but did not merge systems. Recognizing the client’s need for a centralized solution across business units, Penske consolidated multiple operating systems into one for enhanced efficiency. Each location had been operating differently and independently of each other, leading to inefficiencies. Despite the challenge of merging organizations with disparate systems, combining these technologies brought everything under a single, unified framework.

Penske facilitated a seamless integration under one umbrella, streamlining access to comprehensive metrics, reporting and data analysis tools. To eliminate excessive work for the client, Penske even extracted all the manufacturer’s existing files and fully integrated them into a single platform.

Process Improvement

What differentiated Penske from the competition was the process approach to delivering solutions. Along with disparate systems, the client also had disparate logistics processes across business lines from acquisitions. Given the need to streamline processes, establishing process discipline along with effective communication was paramount.

Penske Logistics established a dedicated operating team and presented a cohesive vision to lay the foundation for future transformation. This collaborative team dynamic is essential as new business lines are launched.

Clear Path Going Forward

As a result of these efforts, cost savings have already been realized and the leadership and support of the operating team earned the trust of the manufacturer.

Penske Logistics built the infrastructure to enable growth and efficiency and set the stage to deploy these solutions within additional business lines. As this partnership evolves, Penske remains dedicated to providing unparalleled support and experience.

Why Penske?

A ripple effect can turn a business upside down with poor attention to detail and lack of expertise. Penske views itself as an extension of our customers’ organizations, and we have what it takes to keep your business moving forward.

Sustainability is taking on increased importance as companies respond to consumer trends and preferences, regulatory requirements, and environmental and climate impacts. Organizations are using their supply chains to better align with their environmental, social and governance (ESG) goals.

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The supply chain is increasingly complex and demanding, and there is no one-size-fits-all solution for moving freight. In today’s demanding freight environment, shippers are turning to a range of solutions to get the efficiency and agility they need at the optimal price point. Third-party solutions can complement shippers’ in-house capabilities or even other providers if companies source multiple partners.

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Visibility is critical at the border, and being proactive rather than reactive can keep products moving. Penske has added a border workflow technology tool as part of its ClearChain® technology suite that facilitates collaboration between the many stakeholders involved in a border crossing to mitigate the risk of a delay.

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Two new regulations in Mexico — the Suplemento de Carta Porte and Proyecto de Integración Tecnológica Aduanera (PITA) — are expected to create more documentation and record-keeping which may further complicate an already elaborate process.

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Fleets are working to take advantage of tight capacity by optimizing their lanes and converting empty miles to revenue miles, and Penske is finding creative ways to maximize backhaul opportunities.

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At its heart, transportation management helps companies move freight at the lowest possible cost. And while cost remains an important consideration, so too do customer service, inventory control, change management and multiple other priorities.

This e-book from Penske Logistics explores nine additional ways that modern transportation management solutions drive a competitive advantage. You'll learn how having quick access to real-time data increases visibility. You'll uncover secrets on how to become a shipper of choice. And you'll learn how to choose a solution that will scale with your company as it grows.

Download and read the entire e-book and begin creating a modern transportation management solution that fits today's business needs.

Transportation management systems (TMS) have developed into extremely powerful supply chain optimization engines. However, having acquired an advanced TMS, companies need specialist skills as well as in-depth domain knowledge to get the most out of such an investment.

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As supply chains flex in response to ever-changing market pressures, how can shippers maintain agile transportation networks that continue to operate at maximum efficiency?

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Increasing e-commerce business volumes, growing interest in supply chain sustainability, and shifts in trading patterns are among the changes that are making supply chains — and by extension, outbound distribution networks — more dynamic and complex.

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Congestion is a persistent and costly issue for the transportation and logistics industries, and some areas of the country face greater delays than others. Knowing where the greatest pain points exist can help businesses make informed decisions about their transportation network while also informing lawmakers about areas where greater investments are needed.

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Wait times for commercial trucks crossing at the southern border skyrocketed in April and May as border patrol agents were reassigned to help process asylum seekers. While wait times are decreasing, they are still higher than usual, and any delay can cause a ripple effect throughout the supply chain.

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When buying truck capacity, shippers need to have a clear understanding of carrier pricing trends in relevant lanes. But in the highly fragmented U.S. truck market, freight rates vary in response to many factors, and it can be difficult to get a fix on which rates are competitive and how stable they are in specific lanes.

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The truck driver shortage that is inflating supply chain costs has provoked heated debate over how the industry can solve this perennial problem. Much of the debate centers on how driver recruitment and retention policies can be changed, but another response is to reconfigure supply chains to operate in a driver-constrained environment.

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Every automotive manufacturer’s budget includes a line item for transportation. But that doesn’t mean transportation is a commodity. The short-term financial gain of choosing the lowest-cost carrier can quickly snowball into a long-term loss if that carrier’s lack of reliability shuts down an assembly line.

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Asset tracking of tractors, trailers and even individual pallets continues to provide increased visibility for shippers and their customers. Today's technology allows users to capture more data and analyze it in new ways to improve operations. Users can create benchmarks, better negotiate contracts, improve route planning and increase efficiency.

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