A major multi-site manufacturer of specialized products, with a significant annual spend on outbound freight, needed a transformation in its logistics strategy. Their network complexity was high, serving both major retail chains and direct project/site-specific deliveries from multiple manufacturing locations.
The Customer’s Key Goals:
- Optimize the use of its dispersed plant network (centralized plant mix leverage).
- Implement real-time management and visibility across the entire network.
- Achieve a minimum of 10% net savings from its freight baseline.
Solution
RXO Connect™ Platform Implementation
- Established a unified, enterprise-wide view accessible to all critical stakeholders (manufacturing plants, customer service, suppliers, and the corporate logistics team).
- Provided real-time tracking and end-to-end visibility for all orders.
- Implemented standardized and enhanced dashboards to manage the entire Order-to-Cash cycle and track savings achieved across the entire organization.
- The solution was systematically rolled out across all manufacturing locations over a short four-month period, prioritizing locations with the highest savings potential.
Advanced Shipment Optimization
- Implemented optimization protocols designed to deliver a 10% to 15% reduction in outbound freight costs at a full run rate.
- Orders are dynamically optimized the same day they are released to minimize costs.
- Deployed advanced planning software integrated directly with the customer’s MRP/ERP systems, enabling the execution of daily optimizations at the plant level.
Strategic Procurement & Carrier Management
- Gained access to specialized Last Mile provider networks, capable of delivering optimized line hauls proactively, ensuring final mile delivery within 48 hours of hub arrival.
- Created a preferred carrier routing guide for TL, LTL, and small parcel shipments, ensuring carrier compliance and reliability.
24/7 Exception Management
- RXO established a dedicated control tower team for continuous coverage across all shifts (including shared after-hours resources), providing a complete 24/7 solution for handling all exceptions.