CASE STUDY

Load Planning Delivers US$1.2 Million in Transportation Savings to an e-Commerce Company

Sep 23, 2016

Business Challenge

Better order management for reducing transportation costs

A leading e-commerce company wanted to optimize its order management and shipment, in order to reduce its overall transportation costs.

Situation

Incurring high cargo rates due to incorrect load planning

This client used third party logistics provider for its shipment delivery. It compared its transportation costs as percentage of sales to other companies and realized that despite low transportation rates, its distribution cost was highest, and that the significant difference arose in the cargo shipment charges, as its rates were based on shipment size classification. The client was looking for an effective solution to reduce its transportation costs.

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Solution/Approach

Asset optimization, load planning and order optimization analytics

We integrated the client’s historical distribution and order management data, we used asset optimization, load planning and order optimization analytics for shipment management, based on maximum order aligning capacity. We determined the most effective load sizes and docking which was flexible enough to facilitate adjustments until the day of shipment.

Impact

US$ 1.2 million savings in transportation costs

The client used our load planning solution to uncover the excessive costs it incurred due to splitting order into multiple shipments, and also improved its order management, delivering reduced overall transportation costs, and US$ 1.2 million in savings.

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