Background
A global chemical manufacturer was facing escalating transportation costs due to inefficiencies in its supply chain. Disorganized and non-centralized transportation schedules were significantly increasing accessorial charges and straining relationships with both drivers and suppliers. In response, the manufacturer consulted KAG Logistics for an effective solution.
Problem
At the manufacturer’s supplier site, multiple customers were arriving to pick up products. However, product readiness often didn’t align with carrier arrival times, causing long wait times and frequent shutdowns before loading could be completed. These inefficiencies drove up transportation costs and strained relationships between the manufacturer, supplier, and drivers.
Solution
KAG Logistics proposed a tailored Dedicated Transportation Solution to address these challenges promptly. By leveraging its extensive network of vetted carriers, KAG Logistics assigned one core carrier to the account and implemented a drop-and-hook solution. Empty trailers were stationed onsite so that the supplier could load them as needed. The dedicated carrier then picked up the loaded trailers and delivered them to the manufacturer’s warehouses.
Results
- Increased Efficiencies: The drop-and-hook solution streamlined operations, eliminated excessive accessorial charges, and provided the manufacturer with rate predictability.
- Improved Relationships: The solution fostered stronger relationships between the manufacturer, supplier, and drivers by eliminating inefficiencies and creating smoother, more predictable operations.
- Reduced Logistics Responsibilities: With KAG Logistics handling centralized communication, shipment planning, execution, tracking, and reporting, the manufacturer was able to focus more on its core business, leaving logistics management to KAG.
