The challenge
Our client is one of the dominant players in the global automotive industry with in excess of $2.2b revenue. Their incumbent provider’s freight contracts were due to expire and a comprehensive freight review had not been performed for a number of years.
This presented an opportunity to access savings and service improvements through redesign, segmentation and robust market engagement.
Redesigning the network
Prological’s approach was to design and implement a sustainable, scalable and managed freight solution in the current centralised distribution network and future decentralised network.
The solution would also deliver an enhanced network capability that would enable a 4PL freight management revenue stream for other warehouse 3PL customers.
Growth in new opportunities available
Approximately $1.1 million of annual freight savings and later order cut-off times were derived from this process through metropolitan run/route redesign and segmentation of the linehaul task.
The future defined decentralised network options have been adopted by the business. When implemented, it will deliver a further $600,000pa in overall operational savings while further enhancing service options in Melbourne, VIC and SA.
