Leading Tire Manufacturer

Challenge

This tire manufacturer was utilising more than 30 transport companies for their deliveries – a significant administrative burden to the business. As a consequence it was also near impossible to proactively manage and monitor.  A manual dispatch process was in place which was prone to human error and a manual invoicing process required that each state authorise each invoice before it was then sent back to head office for processing.

Solution

We selected a supplier that specialized in automotive freight and consolidated all transport with this carrier. We implemented the new supplier through a phased process that included thorough training for all warehousing staff and set clear service levels. As part of our solution we installed an electronic dispatch and invoicing system supported by a centralized customer service center. Our client now has a simplified national rate card and receives a single invoice each week.

Results

A reduction in transport costs of 10% has been achieved. Furthermore, there has been a reduction in invoicing processing time and a reduction in labour costs in the warehouse. This has all been achieved with a delivery in full on time (DIFOT) of 98%.