case study - supply chain

the problem

Caught in a costly situation; paying too much for transportation to carriers, warehouse fees for storage locations and professional fees to support 3rd party vendors. This customer’s supply chain costs accounted for 76.1% of the total costs and they were in the process of Chapter 11 Bankruptcy when Palogix was called in to help.

FAST Implementation

In order to curtail the chapter 11 bankruptcy process, Palogix needed to act fast and reduce costs. Within 5 days of being assigned, Palogix provided an action plan, which was then launched within 30 days. This included transforming the customer’s transportation and warehousing networks, as well as implementing new TMS/WMS systems. Within 90 days of the launch, Palogix was operating below baseline costs with reduced manpower, all while increasing operational efficiencies.

savings

With quick implementation and dedicated customer service, Palogix was able to offer the following savings: $2M in transportation, $3M in network optimization, $3 M in management fees and a headcount reduction of 24. We also implemented our Self Billing Invoice process, replacing the traditional and archaic FBAP process. Service and savings became the culture; not a short-term project goal. Palogix created 20% in transportation savings and 7.5% in warehousing savings with overall savings totaling $12.2M.

The integration of our supply chain and logistics solutions, our customers are able to focus on their core competencies with the four walls of their business. Our strategic approach to challenges and strong customer support allows us to build long lasting partnerships with every customer. We have a proven track record of fast implementation and savings.

Fast Implementation and Savings