Background
A small logistics team within a global chemical and building products manufacturer faced efficiency and communication challenges due to limited transportation expertise. Decision-making was assigned to customer service representatives who lacked operational knowledge, resulting in communication lapses across departments and impeding effective carrier coordination for over 300 monthly shipments.
The Challenge
Inexperienced Team: The group responsible lacked expertise in transportation and logistics, leading to inefficiencies in decision-making and day-to-day operations.
Limited Operations Support: Support for handling carrier issues with order changes during non-operational hours was insufficient.
Poor Communication: Communication gaps between departments hindered coordination and resulted in challenges to maintaining effective carrier partnerships.
Staffing Challenges: The client faced resource constraints that hindered the effective management of its supply chain operations.
Multi-Mode and Cross-Border Issues: The client encountered difficulties in managing various modes of transportation, including cross-border operations, further complicating its logistics processes.
The Solution
KAG Logistics provided comprehensive managed services solutions, effectively serving as the liaison between the client and their various stakeholders. Without disruption to service or communications, KAG Logistics was able to provide a cost-effective solution within a 30-day timeframe.
Key Strategies Implemented by KAG Logistics:
Centralized Expertise Hub: KAG Logistics formed a dedicated team of skilled CSRs to enhance the client’s supply chain processes by improving visibility, ensuring routing compliance, managing shipments, and facilitating effective communication.
Day-to-Day Management: KAG Logistics assumed responsibility for daily logistics activities, including carrier coordination and communication, which allowed the client to dedicate more time to their core business activities.
Leveraging Expertise: Through our partnership, the client gained continuous access to our specialized expertise, essential for efficiently managing their operations. KAG Logistics seamlessly integrated as an extension of their logistics team, serving as subject matter experts for their in-house TMS.
Contract Management: The client desired a solution where they maintained carrier contracts and pricing/bid events and kept their TMS in place, due to the costs and resources associated with technology integration.
Versatile Transportation Solutions: Addressing the client’s diverse transportation needs, our solutions encompass multi-modal approaches and efficient cross-border operations.
Results
Under KAG Logistics’ management, the client saw improved customer service and communication, leading to greater satisfaction and continued support. This allowed the client to focus on core business, expanding market share and realizing cost savings of 5-10%. KAG Logistics emerged as a primary service provider, reducing the need for additional personnel and expenses.
The Verdict
Just as every business has its strengths and weaknesses, recognizing areas for improvement is key. By acknowledging logistical challenges and entrusting them to specialized partners like KAG Logistics, companies can enhance efficiency, cut costs, and speed up deliveries for a stronger market position.
