Partnership Customer

Case Study #3: Partnership Customer

Customer wanted a TMS to replace an internally developed dispatch system in order to increase efficiencies, decrease core carrier reliance and a fleet of trucks to create an independent profit center.

Primary issues:

  • Tendering freight using spreadsheets
  • Reliance on 1-2 core carriers per origin
  • High reliance on brokers
  • Receiving paper invoices
  • Only very basic reporting available
  • Transportation employee costs high due to multiple locations  no central dispatch

Scope:

  • Lower freight cost
  • Provide metrics on a daily and monthly basis
  • Streamline the tendering process from paper/email to auto-tendering
  • Provide paperless billing / Reconciliation performed on short pays and overpays
  • Provide financial data and reporting
  • JV fleet to guarantee capacity and provide leverage
  • Provide a TMS which provides auto-tendering to carriers, which is rate driven — chooses lowest cost carrier first
  • Carrier management and compliance

Details:

In 2013 a process began bringing on the client’s facilities one by one with a two year integration strategy. Also a Joint Venture fleet was created to provide extra capacity.  To date, ten shipping mills and several support facilities are managed by PS Logistics.

PS Logistics provides the logistics management off-site with employees strategically geographically located in four states.  Through merger and acquisition of several different companies, the client does not have a universal sales or accounting system to integrate to FMS.  For that reason, the client uses TMS as a load entry and status tracking system.  Several of the client’s personnel have been provided unique permissions associated with their username and password in TMS and alert messages have been set up to notify them via email when new statuses occur pertaining to any of their loads.

With 24/7 access to FMS, any CSR can stay up to date on all shipment information anywhere with Wi-Fi or an internet connection despite no EDI interaction between systems.  PS Logistics manages a Joint Venture fleet of 65 trucks as a stand alone profit center, so net revenue gains would offset transportation and employee overhead expenses.  TMS compiles daily information that is downloaded to another McLeod product, Loadmaster.  From there, carriers are paid and the client is provided a consolidated billing statement as required.

PS Logistics uses the McLeod TMS to manage the process and provides cost savings, asset management, KPI’s, Ad Hoc Reporting, Dispatching, Manage Billing/Settlements, Carrier Pay, Track and Tracing, and Carrier Training.

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