Despite current market constraints, chemical company reduces truck shipping costs

in Case Study

This global chemical company, delivering to more than 100 countries around the world, is focused on the manufacturing, formulation and distribution of crop protection products. They engaged with PLG Consulting to improve their truckload services, streamline their technology delivery tool application and reduce overall cost per mile.

Services Provided

  • Retrieve, scrub and analyze client data to determine a current supplier baseline with a projected future state and a gap analysis
  • Identify outsourced supplier candidates who fit the developed profile and conduct interviews
  • Craft and distribute RFP and analyze the return documents
  • Comparing against the developed scoring matrix, select the top three suppliers (finalist) to meet with the client for a selection review meeting. Visit the top candidate’s site prior to awarding the business. Awarded the business and rolled out the new plan according to the project plan

Results

  • Changed the way transportation procurement was being managed from ad-hoc to a focused standard operating procedure. In step two, the IT system was linked. These two items resulted in an improved cycle time of over 15% from the baseline
  • Introduced monthly Key Performance Indicators (KPIs) along with Monthly Operations Reporting (MOR) with Quarterly Business Reviews (QBRs). This injected accountability and responsibility into the transportation service which was not measured in the previous baseline. On a continuous improvement trendline, the client can expect a 5%-10% improvement in service performance per year
  • With all of the tasks of the project implemented, the client can expect to save approximately $550,000 per year against the baseline which is a 5.15% cost savings
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