Leveraging Managed Services with Brokerage

Background

A leading player in the petrochemical industry faced significant growth-related challenges as its small-scale logistics operations could not effectively support the demands of their expanding customer base. Key issues included:

1. Capacity Constraints: The client’s limited carrier base resulted in missed opportunities and limited market growth. At one point, they failed to fulfill approximately 600 loads due to the inability to secure adequate transportation capacity.
2. Visibility and Tracking: The existing logistics setup lacked robust visibility tools leading to poor tracking capabilities, limited real-time insights into shipment statuses, and substandard communication with their customers.
3. Staffing Constraints: The logistics team struggled to successfully cope with increasing demands due to understaffing, manual processes, and an inadequate carrier base.

Solution

KAG Logistics proposed a comprehensive managed services solution to overhaul the client’s logistics operations:

1. Expanded Carrier Base: KAG Logistics’ extensive network of qualified, vetted carriers offered immediate access to a broader pool of transportation partners, alleviating capacity constraints and ensuring the fulfillment of all shipment requirements.
2. Visibility and Tracking Enhancement: Enhanced Tracking & Alert Solutions (ETA) visibility technology provided real-time tracking capabilities and greater transparency throughout the transportation process.
3. Communication Improvement: KAG Logistics facilitated all communications providing streamlined and timely information to appropriate stakeholders.
4. Staffing Optimization: Rather than hiring additional resources internally, the client relied on KAG Logistics’ expertise and resources to efficiently manage logistics operations, eliminating the need for additional staffing costs, and minimizing overhead expenses.
5. Automation of Processes: KAG Logistics introduced automated workflows to replace manual processes, streamlining operations and reducing the likelihood of errors or delays.

Results

The implementation of KAG Logistics’ managed services solution yielded significant benefits for the company:

• Enhanced Service Levels: The client experienced a significant improvement in service levels, meeting the growing demands of its customers and effectively managing increased shipment volumes without sacrificing quality, accuracy, or reliability.
• Market Growth Capture: By overcoming capacity constraints and enhancing visibility, the client was able to capture more market share within its segment, leveraging its improved logistics capabilities to expand its customer base and drive business growth.
• Cost Savings and Efficiency Gains: The client achieved double-digit freight savings through KAG Logistics’ cost-effective transportation solutions and optimized processes. Additionally, by avoiding upfront investments in technology and additional staffing, the client minimized expenses and improved overall operational efficiency.
• Streamlined Operations: With the adoption of automated processes and advanced tracking technologies, the client eliminated manual inefficiencies and enhanced overall workflow efficiency, resulting in smoother logistics operations and improved customer satisfaction.

This client’s collaboration with KAG Logistics not only addressed its immediate logistics challenges but also positioned the company for sustainable growth and operational excellence in the long term.