1.

Deere & Company

Successful Supply Chain Cost Management Case Study - Deere and Company

Deere & Company (brand name John Deere) is famed for the manufacture and
supply of machinery used in agriculture, construction, and forestry, as well as diesel
engines and lawn care equipment. In 2014, Deere & Company was listed 80th in the
Fortune 500 America’s ranking and was 307th in the 2013 Fortune Global 500
ranking.

Supply Chain Cost Reduction Challenges: Deere and Company has a diverse
product range, which includes a mix of heavy machinery for the consumer market,
and industrial equipment, which is made to order. Retail activity is extremely
seasonal, with the majority of sales occurring between March and July.

The company was replenishing dealers’ inventory weekly, using direct shipment and
cross-docking operations from source warehouses located near Deere & Company’s
manufacturing facilities. This operation was proving too costly and too slow, so the
company launched an initiative to achieve a 10% supply chain cost reduction within
four years.

The Path to Cost Reduction: The company undertook a supply chain network-
redesign program, resulting in the commissioning of intermediate “merge centers”
and optimization of cross-dock terminal locations.

Deere & Company also began consolidating shipments and using break-bulk
terminals during the seasonal peak. The company also increased its use of third-
party logistics providers and effectively created a network that could be optimized
tactically at any given point in time.

Supply Chain Cost Management Results: Deere & Company’s supply chain cost-
management achievements included an inventory decrease of $1 billion, a
significant reduction in customer delivery lead times (from ten days to five or less)
and annual transportation cost savings of around 5%.

2. Intel.
Successful Supply Chain Cost Management Case Study - Intel

One of the world’s largest manufacturers of computer chips, Intel needs little
introduction. However, the company needed to reduce supply chain expenditure
significantly after bringing its low-cost “Atom” chip to market. Supply chain costs of
around $5.50 per chip were bearable for units selling for $100, but the price of the
new chip was a fraction of that, at about $20.

The Supply Chain Cost Reduction Challenge: Somehow, Intel had to reduce the
supply chain costs for the Atom chip, but had only one area of leverage—inventory.
The chip had to work, so Intel could make no service trade-offs. With each Atom
product being a single component, there was also no way to reduce duty payments.
Intel had already whittled packaging down to a minimum, and with a high value-to-
weight ratio, the chips’ distribution costs could not be pared down any further.

The only option was to try to reduce levels of inventory, which, up to that point, had
been kept very high to support a nine-week order cycle. The only way Intel could find
to make supply chain cost reductions was to bring this cycle time down and therefore
reduce inventory.

The Path to Cost Reduction: Intel decided to try what was considered an unlikely
supply chain strategy for the semiconductor industry: make to order. The company
began with a pilot operation using a manufacturer in Malaysia. Through a process of
iteration, they gradually sought out and eliminated supply chain inefficiencies to
reduce order cycle time incrementally. Further improvement initiatives included:

Cutting the chip assembly test window from a five-day schedule, to a bi-weekly, 2-
day-long process
Introducing a formal S&OP planning process
Moving to a vendor-managed inventory model wherever it was possible to do so
Supply Chain Cost Management Results: Through its incremental approach to cycle
time improvement, Intel eventually drove the order cycle time for the Atom chip down
from nine weeks to just two. As a result, the company achieved a supply chain cost
reduction of more than $4 per unit for the $20 Atom chip—a far more palatable rate
than the original figure of $5.50.

3. Starbucks.
Successful Supply Chain Cost Management Case Study – Starbucks.

Like Intel, Starbucks is pretty much a household name, but like many of the most
successful worldwide brands, the coffee-shop giant has been through its periods of
supply chain pain. In fact, during 2007 and 2008, Starbucks leadership began to
have severe doubts about the company’s ability to supply its 16,700 outlets. As in
most commercial sectors at that time, sales were falling. At the same time, though,
supply chain costs rose by more than $75 million.

Supply Chain Cost Reduction Challenges: When the supply chain executive team
began investigating the rising costs and supply chain performance issues, they found
that service was indeed falling short of expectations. Findings included the following
problems

Fewer than 50% of outlet deliveries were arriving on time

Several poor outsourcing decisions had led to excessive 3PL expenses
The supply chain had, (like those of many global organisations) evolved, rather than
grown by design, and had hence become unnecessarily complex
The Path to Cost Reduction: Starbucks’ leadership had three main objectives in mind
to achieve improved performance and supply chain cost reduction. These were to:
Reorganize the supply chain
Reduce cost to serve
Lay the groundwork for future capability in the supply chain
To meet these objectives, Starbucks divided all its supply chain functions into three
main groups, known as “plan” “make” and “deliver”. It also opened a new production
facility, bringing the total number of U.S. plants to four.

Next, the company set about terminating partnerships with all but its most effective
3PLs. It then began managing the remaining partners via a weekly scorecard
system, aligned with renewed service level agreements.

Supply Chain Cost Management Results: By the time Starbucks had completed its
transformation program, it had saved more than $500 million over the course of 2009
and 2010, of which a large proportion came out of the supply chain, according to
Peter Gibbons, then Executive Vice President of Global Supply Chain Operations.

4. AGCO.
Like Deere & Company, AGCO is a leading global force in the manufacture and
supply of agricultural machinery. The company grew substantially over the course of
two decades, achieving a considerable portion of that growth by way of acquisitions.

As commonly happens when enterprises grow in this way, AGCO experienced

increasing degrees of supply chain complexity, along with associated increases in
cost, but for many years, did little to address the issue directly, primarily due to the
decentralized and fragmented nature of its global network.

In 2012, AGCO’s leaders recognised that this state of affairs could not continue and
decided to establish a long-term program of strategic optimisation.

Supply Chain Cost Reduction Challenges: With five separate brands under its
umbrella, AGCO’s product portfolio is vast. At the point when optimisation planning
began, sourcing and inbound logistics were managed by teams in various countries,
each with different levels of SCM maturity, and using different tools and systems.

As a result of the decentralised environment, in which inbound logistics and transport

management were separate operational fields, there was insufficient transparency
in the supply chain. The enterprise as a whole was not taking advantage of synergies
and economies of scale (and the benefits of the same). These issues existed against
a backdrop of a volatile, seasonal market.

The Path to Cost Reduction: Following a SCOR supply chain benchmarking

exercise, AGCO decided to approach its cost reduction and efficiency goals by
blending new technology—in the form of a globally integrated transport management
system (TMS)—with a commitment to form a partnership with a suitably capable 3PL
provider.
As North and South American divisions of the company were already working with a
recently implemented TMS, leaders decided to introduce the blended approach in
Europe, with commitments to replicate the model, if successful, in its other operating
regions.

With the technology and partnership in place, a logistics control tower was
developed, which integrates and coordinates all daily inbound supply activities within
Europe, from the negotiation of carrier freight rates, through inbound shipment
scheduling and transport plan optimisation to self-billing for carrier payment.

Supply Chain Cost Management Results: Within a year and a half of their European
logistics solution’s go-live, AGCO achieved freight cost reductions of some 18%, and
has continued to save between three and five percent on freight expenditure, year-
on-year, ever since. Having since rolled the new operating model out in China and
North America, the company has reduced inbound logistics costs by 28%, increased
network performance by 25% and cut inventory levels by a quarter.

5. Terex.
Headquartered in Westport Connecticut, Terex Corporation may not be such a well-
known name, but if your company has ever rented an aerial working platform (a
scissor-lift or similar), there is a good chance it was manufactured by Terex and
dispatched to the rental company from its transfer center in North Bend, Washington.

The North Bend facility is always full of lifting equipment. The company makes most
pieces to order and customizes them to meet customers’ unique preferences. Terex
maintained a manual system for yard management at the transfer centre, which
generated excessive costs for what should have been a relatively simple process of
locating customers’ units to prepare them for delivery.

The Supply Chain Cost Reduction Challenge: A wallboard and sticker system was a
low-tech solution for identifying equipment items in the yard at Terex. While
inexpensive in itself, the solution cost around six minutes every time an employee
had to locate a unit in the yard. It also required a considerable number of hours to
be spent each month taking physical inventories and updating the company’s ERP
platform.

The Path to Cost Reduction: Terex decided to replace the outdated manual yard
management process with a new, digital solution using RFID tracking. Terex decided
to replace the outdated manual yard management process with a new, digital
solution using RFID tracking. Decision-makers chose a yard management software
(YMS) product, and then had the transfer centre surveyed before initiating a pilot
project covering a small portion of the yard.

After a successful pilot, the company approved the solution for full-scale
implementation, replacing stickers, yard maps, and wallboard with electronic
tracking and digital inventory management. As of December 2017, Terex was
planning to integrate the yard management solution with its ERP platform to enable
even greater functionality.

Supply Chain Cost Management Results: While the YMS cannot reconcile inventory
automatically with the Terex ERP application, it does at least provide a daily
inventory count via its business intelligence module. That alone has saved the labour
costs previously incurred in carrying out manual counts.

More importantly, though, the RFID-based unit identification and location processes
have saved the company around 70 weeks per year in labour costs, by cutting the
process-time down from six minutes, to a mere 30 seconds per unit.

6. Avaya.
Avaya is a global force in business collaboration and communications technology,
and not so many years ago, was operating what, by its own executives’ admission,
was a worst-in-class supply chain. That situation arose as the result of multiple
corporate acquisitions over a short space of time. The company was suffering from
a range of supply chain maladies, including a long cash-to-cash cycle, an imbalance
in supplier terms and conditions, excess inventory, and supply chain processes that
were inefficient and wholly manual.

The Supply Chain Cost Reduction Challenge: After Avaya purchased Nortel
Enterprise Solutions in 2009, the freshly merged company found itself but loosely in
control of an unstable and ineffective supply chain operation. Aside from having too
many disparate and redundant processes, the company had multiple IT solutions,
none of which provided a holistic view of the supply chain or supported focused
analysis.

The Path to Cost Reduction: Avaya’s senior management team realized that its
technology solutions, which varied from being inadequate to inappropriate, were
causing many of its problems. The various acquisitions and mergers had
transformed Avaya into a different kind of enterprise, and what it needed, rather than
a replacement for all the discrete systems, was one solution to tie them all together.

To that end, the company put its trust in cloud technology, which was relatively
immature at the time, and migrated all processes onto one platform, which was
designed to automate non-value-added activities and integrate those critical to
proactive supply chain management, namely:

Point of sale análisis.

Procurement analysis
Supplier communication
Supply and demand planning
Inventory planning
Inbound and outbound logistics planning
Of course, the technology was merely an enabler, and to transform its supply chain
operation, Avaya embarked on a long-term, phased program to standardize
processes, initiate a culture change, invest in top talent, and implement a system of
rigorous benchmarking and KPI tracking.

Supply Chain Cost Management Results: Avaya’s program of transformation took

place over a period of three to four years, between 2010 and 2014. The path to cost
reduction was a long one, but ultimately successful.

By making a conscious effort to lead the enterprise into a new way of thinking,
change business culture, and unify technology under a single platform, Avaya has
improved inventory turns by more than 200%, reduced cash tied-up in stock by 94%,
and cut its overall supply chain expenditure in half.

This dramatic turnaround also required the company to switch from a preoccupation
with improving what it was doing, to a process of questioning what it was doing and
why.

7. Sunsweet Growers.
This final mini-case study in our collection, highlights how sometimes, excess supply
chain costs are not about warehousing and transportation, but can be attributable to
inefficiencies in manufacturing or production and—often at the root of it all—
forecasting and planning.

Sunsweet Growers is the world’s biggest producer of dried fruits and a little over a
decade ago, found that while it was managing distribution operations well, high
production costs were inflating end-to-end supply chain expenditure.

The Supply Chain Cost Reduction Challenge: When the leadership at Sunsweet
looked into the company’s production cost issues, recognition soon dawned that the
distribution network was at least partly behind the problems. As a result, the
company looked at how it could redesign the network to take out some of the
production costs.

Later, it became apparent that although a redesign would yield some benefits, one
of the most significant issues was in the approach to demand forecasting. Sunsweet
was using a manual forecasting approach, with spreadsheets being the only
technology involved.

The inefficiencies of this approach proved not only to hamper effective forecasting
and production planning, but the knock-effect was an excess of warehouses in the
network—so forecasting proved to be both a driver of production cost, and a key to
improving the distribution network.

The Path to Cost Reduction: As in a number of the studies we’ve explored here,
technology played a large part in solving Sunsweet’s problems. After evaluating
some 30 different software solutions, the company finally settled on a supply chain
planning suite, and planned its improvement program to make use of each of the
solution’s modules in sequence, allowing ROI to be realized in phases as each
module was implemented and leveraged.

At the same time, Sunsweet implemented a sales and operations planning program
(S&OP) that once established, enabled plant resource requirements to be
anticipated months—rather than weeks—in advance. As the overall improvement
plan passed through its five phases, positive results accumulated and as hoped,
software ROI reached 100% even before the company completed its full
implementation.

Supply Chain Cost Management Results: Of course, the objective of Sunsweet’s

improvement program was not merely to achieve a 100% return on investment in its
supply chain planning platform. The aim was to reduce production costs, and
although the company hasn’t published hard figures to quantify the total financial
gain, it has claimed the following wins:

A 15 to 20% increase in forecasting accuracy

A reduction in overtime from 25% to 8% in production facilities
A 30% reduction in finished-goods spoilage
Number of warehouses in the United States cut from 28 to just eight
A transportation cost-per-unit that remained static for two years despite increased
utilization of costly refrigerated transport and rising fuel costs
From the achievements documented above, and highlighted in several industry
publications and articles, you don’t need to be too much of a mathematician to
deduce that cost savings would have been considerable.

Making Supply Chain Cost Reductions Stick

Of course, the above case studies are merely summaries of the changes these high-
profile brands made to their supply chains. What can be seen from these brief
accounts, though, is that for an enterprise to make significant and sustainable cost
improvements, substantial change must take place.

Deere & Company had to overhaul its network completely.

Intel had to shift an entire supply chain to a new and previously unheard of strategy
in its sector.
Starbucks had to shake up its third-party relationships and increase production
capacity.
AGCO had to invest in technology and collaborative partnerships with external
service providers.
Terex had to implement costly (but effective) RFID tracking capabilities.
Sunsweet Growers needed a best-of-breed software solution, and an S&OP
program to improve forecasting and planning.
Avaya needed to change company culture, implement cloud technology, rethink
processes completely, and invest in the best supply chain talent it could find.
At the same time, none of the changes took place overnight. Each of the companies
tackled issues in phases, effectively learning more as they went along.
You Won’t Find Savings in the Comfort Zone
When it comes to making supply chain cost reductions that stick, you should explore
every avenue. However, at the root of high costs, there will usually be one major
factor requiring innovation, whether it’s the network, inventory strategy, the working
relationships with supply chain partners, or some other element of your operation.

The Challenge.
The automotive global supply chain touches nearly every other industry, including
steel, plastics, textiles, electronics, and more. As scrutiny of human rights practices
in other industries heated up, the automotive sector knew it could soon become a
target if it did not proactively address the social impacts of its operations. In an effort
to improve the working conditions of the automotive supply chain, five major auto
companies sought BSR's help to create a set of working conditions guidelines and
other tools. BSR was assisted by a sizeable grant from the U.S. State Department
to fund this initiative.

Our Strategy
The goal of the Working Conditions Initiative, housed at the Automotive Industry
Action Group (AIAG), was to create a sustainable auto forum focused on working
conditions. Over two years, BSR worked hand in hand with manufacturers, some
suppliers and other stakeholders to create and implement a program for improving
working conditions. The following were key components of this program:

On-site training: BSR and the working conditions group developed a detailed training
to be executed at factory sites.
Corporate engagement: In order to truly impact the automotive industry's complex
supply chain, top-level engagement from company executives is essential.
Impact
The five participating lead auto companies, AIAG and BSR created guidelines and
trainings to improve working conditions to meet stakeholder expectations. This new
best practice framework can now be integrated into every tier of the automotive
supply chain, allowing it to have substantial impact.

The technique BSR helped develop can enhance brand reputation, provide
operational benefits, enhance profitability, endure business continuity, and mitigate
potential legal risk.

The framework has already been rolled out in Mexico and will be implemented in
other global regions shortly.

Case Study #1 : Inbound Transportation Management.

Client:
A major contract packaging and manufacturing company operating within the
fragrance and cosmetics industry.
Goals and Objectives:To gain control over the inbound supply chain and thereby
improve performance in terms of service and cost with the ultimate goal being
improved outbound order fill rates and customer satisfaction levels.
Challenges:
Major challenges included:
Inbound Dock Congestion
Lack of vendor compliance
Early and late shipments
Misrouted freight
Incorrect freight terms
Overages and shortages
Lack of compliance in general
Poor visibility relative to open purchase orders
Inventory overages and shortages affecting inventory carrying costs and production
scheduling
Poor outbound order fill rates
Lack of meaningful performance measurements
Multiple points of contact (too many)related to the management of the inbound
supply-chain
Lack of communication among internal departments such as Purchasing,
Transportation / Receiving, Quality Control, and Accounts Payable / Accounting.

Inbound dock congestion:

It was typical for the client to receive multiple inbound LTL shipments per day from
various carriers. Many of these shipments would consist of relatively small quantities
of pallets, 1 to 3. Because of lack of dockage, receiving area, the inability to
effectively process multiple inbound orders, and lack of pre-scheduling chaos
ensued which created a ripple effect throughout the entire organization. In order to
provide immediate relief, Land-Link established an off-site cross dock operation
where multiple shipments were consolidated into fewer truckload quantities for final
delivery. While this solution was meant to be temporary in nature, pending rollout of
the final inbound freight management process, it provided the immediate relief that
was needed.

Lack of vendor compliance:

A general lack of vendor compliance and control was at the core of the difficulties
being experienced by the client. Although some of the client’s expectations were, in
fact, included in the original terms of sale with each supplier, not all were, and where
included, typically the “rules” were not being followed and compliance was rarely
enforced. It was common for suppliers to ship product early and late with both
product shortages and overages common in occurrence.

In addition, suppliers maintained the responsibility for carrier selection and the
routing of inbound shipments which resulted in excessive freight costs, inferior
transportation service levels and scheduling implications. Finally, poor shipment
preparation and shipping document inaccuracies negatively impacted the client’s
organization in terms of quality control and financial settlement.
Major components of the solution:
Vendor routing guide:
Land-Link Traffic Systems Inc. authored, with the client’s assistance, a formal
inbound routing guide, approved by the client and subsequently distributed to all
participating suppliers. The routing guide was considered to be the formal document
containing and describing all of the client’s expectations relative to supplier
performance in terms of product readiness, scheduling, routing, product quality,
documentation, financial settlement, etc. Once distributed to and acknowledged by
all of the suppliers, formal communication of expectations and terms of engagement
was considered complete. The formal routing guide was referenced and included as
an addendum to all subsequently issued sales agreements. Finally, portions of the
routing guide served to further support a Quality Control checklist that was used by
the client’s receiving department for the purposes of recording various infractions on
behalf of the vendors related to product condition, pallet quality, packaging, shipping
documentation, labeling, bar-coding, etc. The completed Quality Control checklists
were used a supporting documentation for the levying of charge-backs by the client
and against the supplier due to non-compliance. It should be noted that a schedule
of charge-backs was also included in the routing guide itself.

Purchase Order Download:

In order to gain visibility and control over open purchase orders, Land-Link
established an automated download of the client’s open purchase order file.
Domestic, international, standard, and blanket purchase orders were included in the
daily file. In addition, purchase orders issued by the client’s customers were also
captured. The orders downloaded on a daily basis into the Land-Link TMS system.
It should be noted that, in this case and because the client desired to outsource the
daily freight management function to Land-Link, the TMS was used by the
outsourced operations department in order to execute and properly manage inbound
shipments on behalf of the client on a daily basis. Partial releases against blanket
purchase orders and “HOT” shipments were supported as well. Through enhanced
visibility to open purchase orders and the support provided by Land-Link operations,
greater control over the inbound supply chain began to emerge.

Scheduling and Routing:

With the download of open purchase orders in place, Land-Link was now in a
position to provide the client with improved scheduling and routing of inbound
shipments. The temporary off-site consolidation process was terminated and was
replaced with structured and standardized one hour delivery slots based upon the
number of doors available to accept inbound orders and the number of carriers used
to support the logistics process, typically three core carriers at any point in time.
Imports were also managed as part of the process in order to provide the client with
a single source solution.

Daily Scheduling and Planning:

By utilizing the requested delivery dates assigned to each purchase order less
applicable transit time, Land-Link was now able to proactively make contact and
communicate with each supplier on a per order, per shipment basis in order to
ensure timely delivery of product to the client.
In addition, the client, through Land-Link, was now fully in charge of all routing and
carrier assignments on a per shipment basis thereby eliminating excessive freight
costs, late and early deliveries, overages and shortages as well as dock congestion.
Daily planning and operational control was further facilitated through the use of
ASNs, ACNs, EDI transmissions, and the Land-Link Control Sheet and Pre-Load
Report.

Service Level Maintenance and Sustainability:

Land-Link ensured that necessary service levels were sustained at all times on a per
shipment basis through effective communications with the client, supplier, and asset-
based carrier. In addition, Land-Link’s commitment to tracing all shipments (100%)
from pickup to final delivery and support of service and cost performance reporting
allowed for the sustained benefits of the program.

Performance measurements:
Various performance measurements and Key Performance Indicators were
deployed and continue to be relied upon to measure cost and service performance
as well as to identify additional areas of concern where improvement is needed.

Evolution:
Over the course of time, as expected, the solution deployed and the methodologies
used buy Land-Link to effectively support the client’s inbound supply-chain has
changed many times as the client’s organization and business environment, in
general have changed and evolved. It is anticipated that additional changes, into the
future, will continue to be part of the strategy.

Results:
All client objectives related to the execution of their inbound supply chain have been
met, and the client continues to be the recipient of the benefits associated with the
solution.

Case Study #2 : Outbound Transportation Management and Reverse Logistics

Client:
A well-recognized major manufacturer, importer, and wholesaler of small home
appliances with global operations and sales.

Goals and Objectives:

To gain improved control over the outbound supply chain and thereby improve
performance in terms of service and cost with the ultimate goal being improved cost
efficiency, enhanced outbound order fill rates, and increased customer satisfaction
levels.

Challenges:
Major challenges included:
Current ERP system was relatively weak with respect to freight management
capabilities.
Too much reliance was being placed on human based decisions and manual routing
determinations.
Freight cost optimization was not taking place.
There was a lack of load planning and a high level of shipping frequency into the
same consignee locations over short time intervals.
Compliance with customer/consignee issued routing guides was poor resulting in a
substantial amount of charge-backs being assessed to and absorbed by the client.
There was poor visibility to pending customer orders which had a negative impact
on the overall planning process.
Multiple warehousing locations were being used and there was the need for process
standardization among all facilities.
A manual freight bill audit and payment process was in place. As a result, there was
a high frequency of over-payment to the asset based carriers, a high cost associated
with the processing and payment of carrier invoicing, negative impact on overall
credit rating, and no access to the related data for the purpose of driving meaningful
metrics and KPIs.
The client did not want to purchase or lease a software solution and they did not
want to maintain responsibility for its operation and ongoing maintenance and related
cost. Further, they did not want for there to be the need for a “resident expert”. Very
simply put, the client wanted the benefits of the solution without the typical related
encumbrances.
Finally, the client was looking for a “Hybrid” solution predicated upon a unique
combination of outsourcing, in-sourcing, technologies, and managerial and
operational support.

Major components of the solution:

Development of a customized transportation management system with rating
technologies and optimization:
In order to gain control over outbound shipments, Land-Link deployed a solution that
met the specific needs and requirements of the client.

The solution was virtually “No Touch” for the client in terms of operation and required
maintenance. Customer orders were downloaded automatically and results files
were transmitted to remote GUIs located at their various shipping facilities. The client
simply used the GUI to properly route their freight based on least cost as well as
other constraints and considerations incorporated into the underlying logic.
The system supported customer issued routing guides that were loaded
electronically into the system in order to dramatically improve compliance and
eliminate charge-backs associated with misrouting. Routing guide constraints were
considered by the logic prior to least cost determination / optimization as applied to
existing carrier tariff agreements and base rates.
In addition, the system also included logic to allow the client to maximize the
opportunity to build larger shipments through like consignee consolidation by taking
full advantage of the available shipping window based upon order specific requested
delivery dates, early ship dates, must ship by dates, and cancel dates.
The system was fully supported and maintained by Land-Link, and with the
implementation of an automated customer order download was virtually no touch for
the client. Hence, the client was the recipient of the associated benefits without
having to expend any underlying resources.

Outsourced / In-Sourced Hybrid Approach:

While the client relied upon the technologies provided by Land-Link to route and
manage their own small parcel and LTL shipments, they chose to outsource the day
to day management of volume, truckload, and those shipments requiring special
service or attention to the Land-Link operations department. Accordingly, Land-Link
operations managed each shipment from procurement of rates via spot quotation
through confirmation of final delivery.

Audit and Payment:

Understanding that an effective freight bill audit and payment process was a critical
component of and complement to any well executed freight management
methodology, the client chose to have Land-Link provide it with a best in class audit
and pay process to further augment the transportation management methods,
systems, and support that had been deployed. While the client was highly motivated
to reduce the costs associated with the processing of individual carrier freight bills
and elimination of carrier overcharges, they were also focused on leveraging the
resultant data to support advanced metrics, KPIs and reporting deemed critical to
the making of sound business decisions. Accordingly, Land-Link established a highly
effective database management process that allowed data to be easily mined in
order to drive desired measurements.

Performance measurements:
There were a number of Key Performance Indicators and measurements that the
client was interested in receiving at regular intervals or upon request. In addition the
client also needed to have the ability to gain access to Ad-Hoc reporting capabilities
and one-time analytics. Using the data that was collected as a result of the freight
audit process, Land-Link provided the client with a number of reporting resources
and capabilities including ACCESS Database Reporting, Dynamic Dashboard
Technologies, and Ad-Hoc, One-time analyses supported directly by Land-Link
analysts.

Service Level Maintenance and Sustainability:

Overall effectiveness of the program was ensured by maintaining close attention to
the needs of the client in relation to the ever changing business environment,
transportation market-place and demands of the client’s customer base. The
flexibility built into the technology and outsourced support processes allowed for
necessary changes and further developments to be made as needed in order to
maintain the overall effectiveness of the solution and related benefits. Ongoing
performance measurements and analyses allowed for evaluation of program results.
They also helped identify areas in need of improvement.

Evolution:
Since inception, the solution has changed as needed in order to maintain its viability
and value. Over the course of time the services rendered by Land-Link have also
expanded in terms of number and in scope. Today, in addition to the technologies,
operational support, and freight bill audit, Land-Link also provides the client with:

Carrier recruitment and rate negotiation.

Reverse Logistics
Freight Claims Processing and Administration
Year-end revenue testing
Freight accruals
And many other related logistics services.
Results:
All company objectives related to the effective management of the outbound supply
chain have been met and continue to be supported throughout time. In addition, as
new initiatives and challenges arose, Land-Link and the client were able to combine
their resources and abilities, in what has truly been a positive collaborative
experience for both parties.