case study

Mode MiX optimization

A large global cosmetics manufacturer with manufacturing and distribution facilities globally. The domestic transportation at a high level was very straight forward however the total transportation spend was unusually high. The customer had multiple contracts with multiple carriers and third party logistics companies and a very manual process of load allocation. SPHERE had a two step approach to the problem 1. A detailed analysis of the current supply chain to access the pain points and activities with highest cost. 2. Optimize areas with highest costs for a quick ROI and an immediate return on the investment.

Industry 

Manufacturing

Industry Type

Cosmetics manufacturing and distribution

No. of DCs

15

Challenge

Manual load building process
Manual load allocation
High number of LTL shipments
High volume of expedited shipments

Lack of contract compliance
High penalties and costs
Absence of analytics
Limited planning and forecasting

Solution delivered

Automated load build
Automated load consolidation
Reduced expedited shipments
Avoided cherry picking carrier
Forecasting for next day orders
Higher consolidation levels
Lower number of LTL shipments

Business Benefits

Total TL shipments

Analysis and planning

Increased planning horizon

Total transportation spend

Penalties and demurrage costs

results delivered

Before Optimization

After Optimization

LTL Shipments

72,304

51,122

Cost per Lb

$.05

$.02

Milk run spend

$410,869

$329,211

Total Miles

2,696,043

1,744,440

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