The challenge
A national building products manufacturer with over $1.5b in revenue, the scope of the project involved a freight spend of $35m.
With three manufacturing sites located in QLD, WA and VIC, and customer-facing distribution centres in each capital city, the focus of this project was to optimise the linehaul freight for product movements from the manufacturing sites to the first receiver.
The network had been well designed, well managed and on first appearances, looked very efficient.
Approach
To lead both the client and the transport industry to a more operationally efficient solution, Prological focused on identifying the gaps in the operational approach that constrained the road load capacity.
Our freight and network consultants created the new solution and process by :
- engaging with the transport industry, the client, trailer builders and the government sector to design new equipment solutions
- facilitating a collaborative and open tender process
- providing potential transport providers with the opportunity of an extended contract term to support their investment.
Our solution
Prological’s solution delivered $4.7m (13%) reduction in ongoing transport costs, driven by collaboration and investment, leading to the optimised equipment for each task.
Additionally, there were improvements in the truck turn-around times at the rail terminals by embedding an engineering solution into the new trailers which resulted in an increased throughput at sending and receiving locations.
