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Case Study

A global chemical producer

gains control and

reduces late deliveries through 4PL Control Tower

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15+

Stakeholders

coordinated and monitored

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50%

Reduction in

late delivery

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~107

Late arrivals avoided over 6 months

Summary

By using control tower, a global chemical company was able to reduce late deliveries by 50% on a shipping volume of 2.376 shipments over the course of 6 months.

Customer

A leading chemical manufacturer with a best-in-class range of specialty products operating in 37 countries. Has outsourced most of the export functions to a variety of freight forwarders for the EU to Asia business.

Problem

Customer satisfaction and market position at risk of being affected by rising late deliveries. In addition, detention and demurrage charges were mounting because of inaccurate route information and lack of visibility.

Solution

Setup a Control Tower focused on three primary levers. First, use OTIF alerts system to inform operators whenever estimated time of arrival exceeds the customer preferred delivery date, ensuring that the caretaker can drop in and prevent supply chain disruption. Second, compare customer’s SAP routing times with actual routing info to enable more accurate information for planning. Lastly, perform historical and ongoing analysis of carrier and 3PL performance to provide useful intelligence during tender processes and when booking high-priority shipments.

Results

Reduction of late deliveries from 25% to 11% over just 6 months covering 2.376 shipments.
This improvement of over 50% has a huge impact on cost, time and customer satisfaction.

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