High transportation costs, need to reduce spend
The Client: A global brake parts manufacturer and distributor focused on US, Mexico, and Canada.
How we helped: What began as an initial consultation led immediately to a multi-year managed transportation contract. Novapath created multi-functional teams across operations, tendering, freight audit & payment (FAP), and sourcing to manage land transport in North America and cross border for Truckload (TL) and Less-than-Truckload (LTL). Parallel to the North American team, Tetria staffed a multi-functional team to manage purchase orders (POs) from creation to delivery. These orders were sent from original equipment manufacturers (OEMs) in China, India, and Europe to plants in North America & Mexico. Corsair Transportation Management System (TMS) for North America and Cargowise for import were implemented. Land, ocean and air KPIs were established and are tracked daily, weekly, and monthly with tailored analytics delivered through Tableau.
The Result:
- Completed and executed LTL requests for proposal (RFPs) which reduced expenses by 21%.
- Transition of twenty international OEM suppliers to Tetria's Cargowise TMS and SOPs within the first 90 days, resulting in reduced freight costs by over 50%, as well as transit and inventory reductions.
- TL brokerage use was reduced by 35% through sourcing and contracting asset based carriers on lanes running over 26 times per year.
- Overall, all modes resulted in a 23%, or $7.4 million, cost reduction in the first year.
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