Limited freight options restricted efficient delivery solutions
This national company provides specialised solutions across multiple heavy industries, including energy, mining, transportation, and manufacturing. They supply critical parts and equipment for large-scale operations, requiring a broad range of freight services to handle anything from small parcels to oversized machinery. Their operations span both urban and remote regions across Australia, supporting the continuous functioning of essential infrastructure projects. With a complex network of suppliers and branches, they rely on efficient logistics to ensure timely and cost-effective deliveries to their clients.
CHALLENGES
Before partnering with CFS, this company encountered several significant logistics challenges that hindered their operational efficiency and increased costs. With a diverse range of freight needs, including urgent and oversized deliveries to remote areas, they struggled to meet their service expectations while managing rising freight costs. Below are the key issues they faced:
- Reliance on a Single Carrier
The company was heavily reliant one carrier for all their freight needs, which limited their ability to access more competitive rates and diverse service options. This reliance resulted in inflated costs and inefficiencies, especially for deliveries to remote areas.
High Freight Costs
The restricted carrier network significantly drove up their freight expenses. With limited alternative options, the company couldn't negotiate better pricing or improve the cost-effectiveness or transit times of their deliveries.
Lack of Carrier Flexibility
As their freight requirements varied—from small satchels to oversized vehicles—working with a single carrier restricted their ability to efficiently service these diverse needs, especially for time-sensitive or large-scale shipments.
- Limited Freight Visibility
Without a centralised transport system, the company struggled to gain real-time visibility and insight into their freight movements. This made it difficult to monitor shipments, forecast and provide customers with timely updates, leading to operational delays and customer dissatisfaction.
Urgent Freight Bottlenecks
Handling critical deliveries for mine-site operations meant the company needed faster, more reliable solutions for breakdowns and urgent shipments. Their existing system couldn't meet the demand for urgent deliveries, resulting in costly delays.
Inconsistent Carrier Performance
The company's heavy reliance on a single provider led to inconsistent service levels, including delays, missed deliveries, and poor communication, frustrating both the company and its customers. Without alternative carrier options, the company lacked the flexibility to adapt when their provider experienced service delays or infrastructure issues. Instead of being able to switch seamlessly to another carrier, they were forced to wait until the problems were resolved, causing further disruptions to their operations.
Expanding Reach to Every Corner of Australia
By partnering with CFS, they were able to diversify their carrier network, implement a centralised freight management system, and streamline their shipping processes. As a result, they saw significant improvements in delivery reliability, cost savings, and network reach, ultimately enhancing their operational efficiency and customer satisfaction.
- Diversified Carrier Network
CFS introduced a range of carriers tailored to different regions and freight types, reducing the client’s over-reliance on a single provider. This allowed for better pricing, service reliability, and flexibility in handling varied freight requirements and transit times, from small parcels to oversized shipments.
Centralised Freight Management System
A single platform with child companies for each branch was implemented for booking, tracking, and managing all freight. This centralised system streamlined their processes, reduced time spent on manual tasks, and improved visibility across all shipments, ensuring efficient coordination between head office, their branches and suppliers.
Flexible Freight Options
With access to multiple carriers, the client could now choose the best-suited option for each shipment. Whether it required same-day service, oversized vehicles, or deliveries to remote locations, they had the flexibility to meet their unique shipping needs in real-time and with confidence.
Supplier Integration
CFS developed a solution where the client’s suppliers could easily book shipments through the centralised freight system. This provided full visibility over all freight, including third-party supplier shipments, ensuring consistency and control from dispatch to delivery.
Seamless Onboarding
To minimise disruptions, a staged rollout was introduced across the client's branches. CFS ensured staff were fully trained in the system, providing 24/7 support and guidance to ensure a smooth transition and immediate improvements.
Cost Optimisation
Switching to more economical carriers for different regions and service lanes provided immediate cost savings. The ability to negotiate better rates across multiple carriers helped reduce their overall freight costs while maintaining high service standards.
The Result
- Increase in Carrier Reliability
With access to multiple carriers, the client saw a significant improvement of 60% in service reliability, ensuring more consistent, on-time deliveries, with fewer missed deadlines and delays.
Reduction in Manual Freight Processing
The centralised freight system reduced the need for manual bookings and follow-ups by 50%, which streamlined internal processes and minimised errors, allowing the client to focus on more strategic tasks.
Reduction in Freight Costs
By diversifying their carrier options and optimising their freight choices, the client reduced their freight expenditure by 30%, improving profitability and cost-efficiency.
Expansion in Network Reach
The 40% more expansive carrier network allowed the client to service more remote and regional locations, meeting customer demand in previously challenging areas without compromising speed or service quality.
Improved Flexibility for Urgent Deliveries
The client gained the ability to quickly arrange urgent shipments, including same-day deliveries and direct freight services, ensuring minimal downtime at their customer sites during emergencies.
Streamlined Supplier Freight Management
Suppliers were integrated into the centralised system, allowing the client to manage and control all freight, even from third-party suppliers. This increased visibility, reduced delays, and ensured consistency in all shipments.
Improved Customer Satisfaction
With faster and more reliable deliveries, customer satisfaction increased. The client experienced fewer complaints, improved service levels, and greater customer retention.