Transportation Efficiency Study – Direct Ship, Drop ship and 3PL engagement study

A major food manufacturer wanted to identify improvement opportunities across the different areas of the supply chain including the network, third party channel, logistics and freight. In addition to recommending changes to the network and third party reseller arrangements, substantial opportunities were identified in transportation.

Benefits realized include

  • Benchmarking of contract rates identified 11% reduction in TL contract rates
  • 20% reduction in cost from direct and drop ship activities
  • A third decrease in third party channel costs by taking ownership of the inefficient process areas in the supply chain
  • An incentive model to encourage retailers to order in higher weight brackets to further benefit from direct shipments
  • A full evaluation of the 3PL engagement model, their performance, gaps, opportunities for improvement and roadmap

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