Transportation Management

Case Study #1: Transportation Management

Customer wanted a more efficient way of managing carriers, keeping up with freight cost and statistical data.

transportation-mgmt-case-study-image

Primary issues:

  • Faxing/emailing freight info to carriers
  • Not benefitting from using lowest cost carrier to lane
  • No reporting
  • Receiving paper invoices
  • Excessive overtime for loading personnel

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
  • Implement TMS that auto-tenders to carriers — Tendering is rate driven
  • Provide financial data and reporting
  • Preload trailers, which eliminates man power cost/overhead

Details:

In 2011, PS Logistics began full service on-site logistics management for the client. PS Logistics (PSL) shares the same building and space as the client. In February, 2015 PSL responsibilities expanded to an additional client facility, also providing full-service on-site logistics management.

For both facilities, PS Logistics uses the McLeod FMS platform to manage the process of dispatching truckload shipments,  LTL Shipments and steel rod rail car shipments. Through this platform we are able to provide cost savings, KPI’s, monthly and daily reporting to the client;  billing/settlements, shipment tracing and training with carriers.

The PS Logistics personnel are proficient in the client’s ERP system, SAP. FMS is the Transportation Management System that PS Logistics uses as the tendering system to clients carriers.  SAP and the FMS system communicate throughout the entire freight management process via EDI. Loads are created in SAP by the client’s CSR team and are transferred to FMS via EDI for PS Logistics to view and auto/manual tender to carriers.

The client’s employees (CSR’s, shipping, etc.) also use FMS to view the status of their loads and obtain POD’s for their customers. The FMS is a rate driven system and follows preset rules of allocation. Once the carrier accepts the load in FMS, the load is automatically planned and costed in SAP. After delivery, the carrier is required to upload the POD within 72 hours into FMS. PS Logistics exports the data, performs the billing/settlements and the carrier will receive payment within the commercially agreed upon time. PS Logistics uses the client’s Pegasus system to verify inventory.

Over the past 4 years, we have successfully provided the 3PL services desired by the client and have a thriving business partnership for the years to come.

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