case study - Automotive Supplier

the problem

By trying to manage their own inbound logistics and carrier negotiations, they inhibited their ability to concentrate on their core competencies - production and manufacturing. They struggled in allocating transportation costs at the part level, managing freight bills and accurately forecasting their budget.

A logistics overhaul was necessary - The challenges facing this customer were costly and their internal resources and time were limited.

Value Proposition

Palogix’s experienced team quickly gathered necessary part data, interfaced with all suppliers and established a baseline model of the customer’s existing network. Our Logistics Engineering Team performed an analysis of the customer’s baseline model and created an optimization plan with generated cost savings.

Our Leadership Team developed a detailed value proposition, outlining the execution plan and guaranteed savings. An agreement was made on Dec 17th, 2012 and a “Go-Live” date was set for Feb 11, 2013. This initiated the first launch of seven manufacturing plants.

Fast Implementation

A dedicated Palogix Team was allocated and in action within 15 days, providing the following functional roles:

Engineering – Network optimization and dynamic weekly routing

Operations –Check calls, management of carrier issues and reviewing route utilization

Control Tower Operations (CTO) –Track and trace shipments, event notification & resolution

Freight Bill Audit and Payment (FBAP) –Carrier transition to self-billing invoice process and on-going review of items under dispute

By the close of March 2013, Palogix completed the design for 7 distinct North American locations with an executable game plan forecasting savings into the end of the year.