Introduction
In the dynamic landscape of bulk transportation and logistics, the ability to seamlessly integrate and leverage diverse resources is key to success. The KAG Enterprise comprises six distinct operating groups, with a singular mission to meet customers’ most demanding transportation and logistics needs. They capitalize on their collective power to provide expanded resources, unmatched expertise, and customized solutions. This is a strategic advantage that sets KAG apart and empowers its customers to meet or exceed their unique bulk transportation and logistics requirements.
Background
A large national final-mile delivery services company was channeling its fuel orders between two KAG operating groups: non-asset-based KAG Logistics and asset-based KAG Energy. Over time, this structure caused communication and operational disruptions, as well as recognized process inefficiencies. Additionally, the company employed a small in-house logistics staff responsible for managing all business, operations, and communication aspects for their 900 service centers. This small team managed all fuel inventories, ordering, checks/fits, and more. They also utilized many carriers, in addition to KAG, to deliver fuel to their sites.
Challenge
With so many different carriers, the company faced the added strain of yearly rate negotiations and multiple rating structures. The small logistics team was overtasked and overwhelmed by this method of operational strategy. The complex and fragmented process was leading to inefficiencies and communication breakdowns. There was a clear need for a more streamlined and efficient approach to managing their fuel orders and logistics operations.
Solution
A streamlined approach was proposed and implemented. Collaborating to create a simplified process, KAG Logistics and KAG Energy designed an alternative solution that funneled all orders through a dedicated team at KAG Logistics. This approach provided a single point of contact for the customer, enhancing communication and operations. All orders and communications would be managed by KAG Logistics, which would arrange carriers for fuel deliveries.
KAG Logistics began managing all aspects for 750 of the customer’s sites—from carrier selection to order delivery, as well as rolled loads, incident reports, communications with suppliers, allocation, and no-fits. Quickly realizing the value of KAG Logistics’ service offerings, the customer then turned over the remaining 150 sites to KAG Logistics. This final solution allowed the customer to focus on their core business while entrusting KAG Logistics with the execution of day-to-day logistics activities for their entire network.
Outcomes
- Constant Availability: KAG Logistics coordinators are available 24/7/365. Even during off hours, carriers and field operations have immediate access to talk with someone.
- Support During Unplanned Events: KAG Logistics’ services are crucial during the customer’s unplanned operational disruptions and supply chain disruptions. KAG Logistics arranges pump-outs, environmental visits, site visits, electrical outages, and environmental/emergency response services.
- Operational Efficiency: KAG Logistics handles inventory management, ordering, deliveries, rolled loads, incident reports, communications with suppliers, allocation, and no-fits, leaving the customer with more time, resources, and revenue to focus on their core business.
- Incident Resolution: The customer had been managing all communications, incidents, and resolutions with 22 different carriers. With the new solution in place, all incidents such as spills, delays, run-outs, and accidents are routed to KAG Logistics for management and resolution.
- Optimized Rating: KAG Logistics is agnostic when selecting the best carrier for each load. With access to over 5,000 vetted carriers, they seek the best rate for the customer. In some cases, the rates are lower than typical market rates. With a small carrier portfolio, the customer’s carrier options in any given region were limited; however, KAG Logistics partners with many carriers in those same regions, allowing for competitive rating and providing the customer with cost-saving options.
- Improved Cash Flow: KAG Logistics’ technology solutions provide bills of lading within 24 hours. By shortening the window for receiving these vital documents, the customer was able to shorten invoice turnaround and process supplier payments quickly.
- Staffing Flexibility: Whether planned or unexpected, personnel changes can cause setbacks for many aspects of business operations. KAG Logistics has dedicated staff, expertise, and adeptness to bridge any personnel gaps, temporarily or permanently.
