High costs and zero visibility
A multinational supplier in the caravan and RV industry, specialising in components such as toilet seats, fridges, ovens, and various parts essential for equipping a complete caravan and RV. The company primarily serves wholesalers and offers drop shipping for online retailers, catering to both B2B and B2C markets. With products manufactured in several countries within Europe, the company manages a complex supply chain to ensure timely delivery. Their Australian operations involve warehousing in Somerton, Melbourne, from where they distribute nationwide, navigating the unique logistics challenges of the caravan and RV market.
CHALLENGES
Despite their extensive operations, the company encountered significant obstacles in their freight management:
- Escalating Freight Costs
Due to reliance on a single carrier, the company faced rising freight costs, particularly when shipping to remote areas like Western Australia and the Northern Territory. This lack of control over logistics resulted in inflated expenses, adversely affecting their cost recovery.
Lack of Shipment Tracking
Without a cohesive system to monitor shipments, the company struggled to provide timely delivery updates to their wholesalers and online retailers. This absence of visibility often led to delays, making it challenging to ensure punctual deliveries across Australia, which negatively impacted customer satisfaction.
Limited Logistics Oversight
The company had minimal involvement in selecting carriers and managing the freight process. This dependency on one carrier hindered their ability to respond swiftly to varying shipping needs, especially when handling large or bulky caravan components.
Complicated Distribution Management
The distribution of a wide range of items—from small parts to large appliances—lacked a streamlined approach. This complexity created inefficiencies within their internal teams, increasing the overall burden of managing logistics and impacting their ability to meet customer demands.
- Gaps in Communication
Acting as a liaison between clients and the carrier, the company experienced challenges in resolving shipping issues promptly. Delays from the carrier hindered their ability to effectively manage logistics, preventing them from meeting crucial deadlines and delivering quality service to their clients.
Powering a Transparent and Diverse Supply Chain
We delivered a tailored freight management solution designed to address the unique logistical challenges faced by the caravan and RV parts manufacturer. By implementing a diversified carrier network, we provided the company with flexible shipping options and improved cost efficiency for their extensive product range. Our system facilitated real-time tracking and communication, empowering the manufacturer to manage their logistics seamlessly. This transformation has enabled them to streamline operations, reduce costs, and enhance customer satisfaction across their nationwide distribution network. Here’s how we transformed their operations:
- Diversified Carrier Network
- CFS implemented a network of multiple carriers, allowing the company to select the most efficient and cost-effective freight solutions tailored to their unique shipping requirements.
- Flexible Pricing Structure
- We introduced a pricing model specifically designed for their product SKUs, enabling choices between cents per kilo rates and pallet rates, ensuring optimal cost management for varying sizes and weights of caravan components.
- Enhanced Communication
- Our solution included automated tracking emails for drop shipping, streamlining the order fulfillment process and providing real-time updates on deliveries to wholesalers and online retailers.
- Comprehensive Training
- We provided one-on-one training sessions for their dispatch team, warehouse manager, and sales staff, empowering them to utilise our systems effectively and ensuring a smooth transition to the new logistics management process.
The Result
Since implementing our solution, the client has experienced:
- Personalised Service
- Since partnering with CFS, the company has experienced a significant shift towards a more tailored logistics service, enhancing their operational capabilities
- Cost Reduction
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The tailored approach has resulted in reduced freight costs by approximately 20-30%, particularly for deliveries to remote locations.
- Improved Efficiency
- Enhanced operational efficiency has allowed the company to adapt quickly to fluctuations in demand within the caravan and RV market, resulting in faster turnaround times.
- Improved Customer Service
- The sales team now has direct access to our booking portal, greatly enhancing their ability to manage urgent deliveries and returns.
- Increased Customer Satisfaction
- Overall, the company has reported higher satisfaction levels among clients due to timely and reliable service.