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Managed Transportation Program Generated More Than $1 Million in Annual Savings

A global manufacturer in silicone-based technology needed a safer, more efficient domestic transportation model for inbound materials and outbound finished products. A centralized distribution and managed transportation approach reduced cost and inventory while maintaining service levels.

Table of contents

Customer Overview

Challenges

Solution

Results

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Customer Overview

Multi-billion-dollar global manufacturer in silicone-based technology
Industrial vertical
Services: managed transportation and warehousing
Volume: 76,000 shipments annually

Challenges

High share of hazardous-material shipments
Need to control logistics operating cost
Maintain high service levels across inbound and outbound flows

Solution

Redesigned the network around a central distribution warehouse
Shifted outbound collection to outbound prepaid to lower freight rates
Optimized and consolidated shipments

Results

Recurring annual optimization savings above $1 million
Inventory reduction
Strong safety performance in hazardous-material transportation
Recognition as a Responsible Care® Partner by the American Chemistry Council

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