CASE STUDY

 

Streamlining Freight for a 

Agricultural Manufacturer

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Complex freight, multiple carriers, limited visibility solutions

The customer is a leading Australian agricultural manufacturer, specialising in providing comprehensive solutions for dairy farms. Their operations cover three main areas: supplying essential consumables for daily dairy farm needs, manufacturing specialised chemicals such as teat dips and disinfectants, and constructing entire dairy facilities, including milking stations and sheds. As their business grew, so did their freight demands, ranging from small consumables to large industrial equipment. They were managing upwards of 100 shipments daily, leading to a complex and overwhelming logistics process. With multiple carriers and no centralised system for tracking and managing shipments, they needed a solution that could streamline their freight operations, reduce costs, and provide greater visibility and control over their logistics

CHALLENGES

Before partnering with CFS, this agricultural manufacturer faced several logistics challenges that hindered their efficiency and growth. Below are the key issues they encountered:

  • Managing Over 100 Freight Providers
    The customer was using over 100 different freight providers, resulting in a complex and overwhelming freight management process, with numerous bills and contracts to juggle each week.

    Lack of Centralised Freight Tracking
    With so many providers, the customer had no way to efficiently track or trace freight jobs, leading to wasted hours manually following up on deliveries and delays in responding to customer inquiries.

    Freight Dispatch Bottlenecks
    The customer struggled to process more than 40 freight consignments per day, despite having demand for over 100 jobs daily. This bottleneck limited their ability to scale effectively and meet customer demand.

    Inefficient Use of Company Drivers
    Their internal drivers were spread thin, delivering to 20-30 different depots each week. This resulted in inefficiencies and wasted resources, as their drivers were not being utilised for higher-priority tasks.

Frequent Freight Delays
The customer regularly experienced delays in getting freight out the door, particularly for large or complex shipments, due to the difficulty of coordinating multiple carriers and the lack of a streamlined process.

 

  • High Freight Costs
    Using multiple freight providers meant they were not able to take advantage of bulk rates or negotiate better pricing, resulting in unnecessarily high freight costs across their operations.

    Low Cost Recovery on Freight Spend
    The customer was only recovering about 15% of their total freight costs, leaving a significant gap in their profitability when it came to their shipping expenses.

    Difficulty Managing Return Freight (IBCs)
    Managing the return of reusable IBC containers was an inefficient and manual process, with seven or eight different companies involved in returning containers, leading to further logistical challenges.

    Limited Freight Visibility
    Without a centralised system for booking and managing freight, the customer had no real-time visibility into their freight movements, making it difficult to provide updates to their customers and monitor delivery progress.

    Inconsistent Carrier Performance
    Different carriers provided varying levels of service, leading to missed delivery windows, lack of accountability, and frustrated customers when freight was delayed or mishandled.
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Simplifying logistics, boosting efficiency and cost recovery

To address the various challenges faced by the customer, CFS implemented a comprehensive freight management solution:

  • Consolidation of Freight Providers
    By consolidating all of the customer’s transport needs into one platform, CFS eliminated the need to communicate with and be billed by over 100 different carriers. This provided the customer with a single point of contact for all shipments, streamlining their processes and removing the inefficiencies caused by managing multiple provider systems and teams.

    Integrated Freight Tracking System
    CFS integrated a centralised system that allowed the customer to track and manage all freight movements in real time. This eliminated the manual follow-up process and provided greater visibility for all departments.

    Optimised Freight Dispatch Process
    CFS streamlined the dispatch process, enabling the customer to handle over 100 consignments per day, compared to their previous limit of 40, significantly increasing their operational capacity.

    Efficient Use of Internal Drivers
    By consolidating deliveries and reducing the number of depots, we freed up the customer’s drivers to focus on priority deliveries, optimised routes and manufacturing support, improving overall resource efficiency.

    Cost Recovery Improvements
    We introduced a transparent freight cost tracking system, allowing the customer to recover a much larger percentage of their freight spend, significantly boosting their bottom line.

    Return Freight Management
    CFS simplified the return process for their reusable IBCs by consolidating return freight with a few core carriers. This reduced manual processing time and improved overall efficiency.

The Result

  • The partnership with CFS delivered transformative outcomes for the customer, providing operational improvements and cost savings. Key results include:

    Increased Freight Efficiency
    Freight processing time was reduced to 15-20 seconds per job, allowing them to handle over 100 consignments daily, compared to just 40 previously.

    Reduced Freight Costs
    Consolidating carriers and securing sharper rates with larger providers resulted in a significant reduction in freight costs, saving the customer time and money.

    Enhanced Freight Visibility
    The customer now has full visibility of all freight movements in real time, allowing them to track consignments and respond to customer inquiries promptly.

    Improved Cost Recovery
    Cost recovery on freight spend increased from 15% to 80%, greatly improving their financial position and allowing them to reinvest in other areas of the business.

    Optimised Driver Usage
    Internal drivers are now being used more efficiently, focusing on high-priority deliveries and supporting manufacturing, leading to greater productivity.

    Streamlined Return Freight
    The return of IBC containers was simplified, saving the customer time and reducing the complexity of managing return shipments.