CASE STUDY

 

Streamlining Freight for a 

Closure Manufacturer

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Missed Deadlines, Poor Communication, & Penalties

The customer is a leading manufacturer of bottle closures, specialising in producing caps and seals for the wine, beer, and beverage industries. Their products are highly customised, designed to meet the specific needs of bottling manufacturers across Australia. With a focus on delivering precise and time-sensitive shipments, their closures play a critical role in ensuring the production schedules of their clients run smoothly. Their key customers include wineries, breweries and bottling plants, where on-time delivery is essential to maintain production flow.

CHALLENGES

Before partnering with CFS, this company faced significant challenges with time-sensitive deliveries and communication breakdowns with their carriers. These issues led to missed delivery slots, penalties, and the risk of losing key customers. Additionally, their customers, such as breweries and bottling plants, operate on strict production schedules, which meant any delay could severely disrupt operations. Below are some of the key issues they were facing:

  • Missed Delivery Time Slots
    The company regularly missed scheduled time slots for deliveries, causing disruptions to their customers’ production schedules. Clients operate with minimal stock on hand, meaning deliveries must be precisely timed to avoid production stoppages and penalties.

    Poor Communication from Carriers
    There was a significant communication gap between the company and their carriers. Delays or missed deliveries were often only discovered when their customers reported them, which damaged trust and resulted in a loss of confidence from key clients.
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  • High Risk of Losing Key Clients
    Due to the time-sensitive nature of their deliveries, the company was at constant risk of losing major customers if delivery times were not met. Clients depended on accurate, timely deliveries to avoid halting their production schedules, and any consistent failures could result in significant revenue loss.
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  • Partial Deliveries
    They often experienced issues with only partial orders being delivered on time, which further complicated their customers’ production processes and caused inefficiencies.
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  • Lack of Flexibility for Regional and Expanding Market
  • As the company began expanding into new regions like Western Australia, they struggled to find reliable carriers who could meet their needs for timely and cost-effective deliveries in those areas. This limited their ability to grow in regional markets, where customers often faced longer delivery times.
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  • Inconsistent Carrier Performance
    While some deliveries met the required standards, there was a high level of inconsistency in carrier performance, with fluctuating service levels depending on the location or time of year. This made it difficult for the company to provide reliable delivery estimates to their customers.
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  • Limited Control Over Delivery Process
    The company had little control over the end-to-end delivery process, relying heavily on the carriers’ internal systems and schedules. This lack of visibility meant they couldn’t actively manage or mitigate delays before they occurred, resulting in reactive communication with customers.
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Tailored Freight Solutions for Time-Sensitive Deliveries

To address the challenges this bottle closure manufacturer faced with time-sensitive deliveries, communication issues, and managing multiple carriers, we implemented a series of tailored solutions:

  • Dedicated Carrier Setup for Time-Sensitive Freight
    We worked closely with carriers to establish dedicated time slots that met the production schedules of the customer’s key clients. This involved clear communication with the carrier's operational teams, ensuring everyone understood the importance of the specific delivery windows

  • Proactive Communication Process
    We implemented a proactive communication system that provided real-time updates to the client in case of any delays or issues. This ensured that the client could inform their customers in advance, reducing the risk of penalties and maintaining strong relationships.

    Carrier Diversification for Regional Reach
    We reviewed the client's needs for expansion into new regions, such as Western Australia, and diversified their carrier network to include more reliable and cost-effective options. This gave the client flexibility and ensured smooth operations even as they entered new markets.

    Ongoing Carrier Review
    To ensure the highest service standards, we continuously reviewed carrier performance, adjusting the network as needed to maintain reliability and meet the client’s evolving demands.
The Result

  • Increased On-Time Delivery Rate
    By establishing dedicated delivery windows and improving communication, we increased the client’s on-time delivery rate to 98%, ensuring that deliveries were consistently aligned with customer production schedules.

    Enhanced Customer Retention
    Our proactive communication and delivery accuracy resulted in a 100% customer retention rate, securing long-term relationships with their key clients and reducing the risk of penalties due to missed deliveries.

    Reduction in Partial Deliveries
    We reduced instances of partial deliveries by 98%, ensuring that orders arrived complete and on time, improving the client’s service offering and operational efficiency.

    Seamless Service Continuity
    Through our ongoing carrier review process, we achieved 100% seamless service continuity when transitioning between carriers, ensuring the client experienced no disruptions in their delivery schedule, even during changes in logistics partners.