Success Story

Global chemical producer

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Global chemical producer
gains control and reduces
late deliveries through 4PL
Control Tower

15+

Stakeholders
coordinated
and monitored

50+

Reduction in
late delivery

~107

Late arrivals
avoided over 6
months

Summary

By using control tower, a globlal 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 outsource most of the export funtions 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 focuses on three primary levers. First, use OTIF alerts system to inform operators whenever estimated time of arrival exceeds the customer preferred delivery data, ensuring that the caretaker can drop in and prevent supply chain disruption. Second, compare customer's SAP routing times with actual routing info a 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 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.

OTIF Performance

On time

Over time

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

25%

25%

25%

22%

20%

20%

15%

11%

July 19

August 19

September 19

October 19

November 19

December 19

January 19