A government contractor looking for leverageable insights, waste reduction and cost savings in their supply chain

The Challenge:

A global leader in aerospace and defense faced challenges in managing its complex and fragmented multi-business unit supply chain, including disparate data sources, multiple service providers, limited visibility into freight spend, and difficulty identifying opportunities for optimization.

With over 30 different data sources across various business units and third-party providers, they struggled to gain a unified view of their transportation network, leading to inefficiencies, and missed cost savings.

The RXO Solution:

RXO’s Managed Transportation group developed a comprehensive solution that combined engineering and data management services to address these specific challenges, with a dedicated team of experts to support the unique needs and to help drive continuous improvement:

1. Build a Data Lake with Standardization and Harmonization. Consolidation of over 30 multiple data sources into a single, unified data lake.
2. Drive Network and Transportation Optimization. Leveraged advanced analytics to identify opportunities for network optimization, mode shifts, and carrier consolidation.
3. Provide Enhanced Visibility. Providing real-time visibility into freight spend through RXO’s cutting-edge technology platform, RXO Connect.
4. Ensure Top-of-the-Line IT Security. Implementation of robust IT security measures to protect sensitive data and ensure compliance with industry regulations.

The Process:

The data used in this project falls under the classification of ‘big data’ due to its volume (millions of records), variety (potentially heterogeneous data types), and velocity (potential for real-time data ingestion). Traditional on-premise solutions, particularly spreadsheet software, are inadequate for handling such datasets.

Using a Microsoft Azure-based solution, RXO developed a comprehensive suite of services for data ingestion, storage, processing, and analysis: Azure Data Factory for data ingestion and orchestration, Azure Databricks for scalable data processing with Spark, and Azure Machine Learning for the implementation and deployment of our AI-powered
data cleansing algorithms.

The cloud-native architecture of Azure enables rapid deployment and elastic scaling, significantly reducing the time-to-value for this data cleansing initiative. Power BI analytics tools offers data visualization and insights to provide real-time visibility.

The Results:

RXO performed a network optimization study for a greenfield distribution center that involved designing an optimal logistics network from scratch, including selecting strategic locations for new distribution centers to minimize transportation costs and improve service levels. The study explored savings opportunities such as reduced transportation expenses and improved delivery efficiency, while also minimizing the environmental impact through shorter routes.

• Significant Cost Savings Expected. The customer expects to achieve significant cost savings of 25% by leveraging RXO’s data-driven insights and optimization strategies.
• Improved Productivity. Streamlined processes and enhanced visibility will enable the customer to improve productivity across its supply chain operations.
• Enhanced Decision-Making. Real-time data and analytics will empower the customer to make more informed decisions, optimize its transportation network, and respond quickly to changing market conditions.
• Increased Visibility. Gaining a comprehensive view of $750 million in freight spend will enable the customer to identify and address inefficiencies, negotiate better rates with carriers, and improve overall supply chain performance.