CASE STUDY | TMS
Leveraging BluJay’sTransportation Management to reduce freight spend
Home Improvement Retailer
Ace Hardware has annual sales of over $3.5 billion. The Ace Hardware transportation network consists of approximately 30,000 truckload OTR shipments, 8,000 intermodal shipments, 17,000 ACE fleet shipments, and 2,700 lanes. Ace spends about $50 million in truckload transportation costs annually.
LEADING Home Improvement RETAILER
$3.5B in Sales
More than half of Ace Hardware’s shipments— approximately 65 percent – move as freight collect, meaning Ace pays for the moves. Ace Hardware’s inbound transportation process was managed manually with spreadsheets, utilizing inefficient processes and producing outdated information. Ace wanted better control of inbound transportation to automate processes, gain efficiencies, understand costs, and identify areas for improvement.
Ace Hardware sought to improve visibility of inventory and orders, while gaining control of supplier performance and freight cost.
Gain visibility into true freight costs
Identify and manage inbound freight
Centralize freight payment
Obtain business intelligence to assess carrier performance
Reduce freight costs
Ace Hardware established a list of goals for a transportation managetment system.
Ace Hardware selected BluJay’s Transportation Management platform to meet its needs and goals. The Transportation Management software transmits Ace orders to suppliers, then selects and tenders to the lowest-cost or best-match carrier. The carrier accepts the load through BluJay’s Transportation Management, where the supplier has visibility to carrier acceptance and schedules an appointment. BluJay’s technology platform gives Ace Hardware visibility to order and load statuses while providing information on true transportation costs.
BluJay’s Transportation Management is the gift that keeps on giving. Their solution runs our transportation network while opening our eyes to additional opportunities with broad supply chain impact. We continually evolve with BluJay.
DIRECTOR OF TRANSPORTATION
Capabilites & Benefits
BluJay’s platform provides Ace with visibility and benchmarking data that helps improve lead-time accuracy and reduce inventory levels at distribution centers. Prior to deploying BluJay Solutions, Ace experienced low lead-time dependability from suppliers, thus requiring higher levels of safety stock. With the business intelligence provided by BluJay’s Transportation Management, Ace identified the problem areas and made adjustments to reduce inventory, increase inventory turns, and improve lead-time dependability.
“BluJay’s Transportation Management runs our daily operations and we harvest the visibility of real-time information to gain better control of transportation performance and cost,” said Ace Hardware’s Director of Transportation.
Automate transportation tasks, including planning, execution, and settlement
Leverage BluJay's network to manage inbound shipments for greater freight savings
Use BluJay’s Procurement application to automate spot market RFPs
Utilize the BluDex® transportation lane index to compare freight costs to market
Gain visibility of orders and shipment status
Improved real-time visibility and business intelligence
Reduced safety stock levels
Improved freight routing
Increased freight bill savings
Reduced lead time from production
A Valuable Relationship
The relationship between Ace Hardware and BluJay Solutions continues to evolve. Along with Transportation Management, Ace uses additional solutions integrated in the platform including BluJay's Procurement, BluDex, and Freight Management.
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Ace estimates that BluJay Solutions saved the company over $18 million in transportation costs since implementation. The savings come from process efficiencies, such as selecting the right carriers and right modes. In addition, Ace has realized savings from BluJay’s Procurement, leveraging the tool’s real-time market information to negotiate better agreements with carriers.