CARRIER SOURCING AND PROCESS CENTRALIZATION
A global food and beverage ingredient manufacturer with over 30,000 employees and operations in 60 countries sought to centralize transportation management to enhance efficiency and reduce costs following a major business acquisition. This required a partner capable of executing seamless logistics transitions without disrupting service while supporting continued growth in a competitive industry.
CUSTOMER CHALLENGES AND NEEDS
• Outgrew their previous logistics provider due to business expansion
• Centralize transportation management across its complex business model
• Integration of disparate systems
SOLUTIONS
With just 90 days to launch the first business unit, Penske used project discipline to:
• Conduct a thorough assessment of operations, including a Value Stream Mapping exercise
• Assume responsibility for carrier sourcing and management
• Qualify, negotiate and contract the manufacturer’s previous carriers to Penske standards and expand carrier base
RESULTS
• A $1.1M estimated annual savings through rate reductions, routing improvements and better carrier selection
• Established consistent processes across sites