Case Study
Plan for every part (PFEP)
and packing design
Solution
Challenge
Customer
Industry
Industrial manufacturing
Results
- $174,000 Annual freight cost savings
- 83% Improvement in consolidation
- 90% Increase in space utilization
- 100% Quality sustainment
Customer Profile
A leading forklift manufacturer had launched its new series of pantograph reach trucks. Dealers were particularly excited about the tilted mast feature on these reach trucks which gave the client a competitive advantage in the market. However, when parts for this new reach truck were initially sourced during the pre-production stage, there was not enough thought given to the packaging and transportation of these parts to the client. Due to lack of packaging standards, the supplier was shipping most of the painted parts on pallets (one part, one pallet) to avoid having the parts rub against each other and damage the paint and/or the part while in transit. However, this quickly increased the inbound transportation cost by 75% as the client could only load 24 parts per trailer. Additional storage problems were caused due to lack of pallet stack ability.
Overview
Overview
Based on Uber Freight’s 25+ years of international trade experience and trusted relationships in key industries, Avery Dennison appreciates greater collaborations and sharing supply chain best practices. Working with Uber Freight’s dedicated teams, Avery Dennison enjoys the enhanced simplicity and speed of logistics planning, including:
Improved financial performance
- 15% cost reduction in customs services and
10% savings in freight
- Cut transportation costs by leveraging the
largest North American freight network to
optimize loads
- Reduced the risk of lost, stolen and damaged
products with less freight transfers and multi-
touch shipments
Increased operational excellence
- Strategy design focused on NAFTA supply
cycles
- 95+% next-day regional servicesWeekend
linehaul runs allowing Monday freight availability
at Laredo
- Eliminated coordination with multiple vendors
for freight transfers and multi-touch shipments
by coordinating with a single 4PL provider
- Complete door-to-door consolidated across
the border into Mexico
Confidence and peace of mind
- Dependable and timely shipment coordination
on both sides of the border
Results
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Connect with an expert
The client needed to design efficient packaging for select new parts to improve material handling, reduce inbound transportation cost, eliminate damages, expedite the receivingprocess, and optimize space utilization in the warehouse and on the production line.
Challenge
The ultimate goal was to decrease inbound transportation cost by consolidating more parts in a trailer while still maintaining 100% quality. Uber Freight was able to leverage the use of its Lean, Plan-Do-Check-Act (PDCA) tools to build a cross functional team comprised of key stakeholders from each area of the supply chain including but not limited to receiving, warehouse, assembly and supplier personnel to document and validate the current state. After a brainstorming session, the team was able to identify 20% of the parts that caused 80% of the problem for better packaging review. Uber Freight was able to design and implement returnable bins with custom packaging that could enable the supplier to ship 10 parts in one bin instead of one part per pallet while still maintaining a 100% quality. These returnable bins could also be efficiently stacked two-high inside a trailer thereby improving
trailer cube utilization.
Additionally, they significantly reduced inbound transportation cost. As a result of improved consolidation, Uber Freight was able to pick up parts from other suppliers in the same region. This improved routing and lowered the total inbound freight cost. It also enabled the customer to avoid leasing another warehouse to store these new parts.
Solution
Results
In a highly competitive market, Eaton continuously ensures product delivery at an affordable cost, with speed, consistency, and no damage. Eaton’s supply chain strategy relies on cross-docking and LTL pooling to save on freight and improve transit times.
In addition, a Tier 1 supplier located in Mexico required Eaton to deliver materials faster – despite the 3,000 miles distance between the manufacturing and distribution centers – to keep up with marketplace demands.
Eaton turned to Uber Freight to gain real-time visibility tracking freight from origin to final destination, as well as cross-border expertise to speed shipments from Mexico.
Opportunity
Uber Freight’s Public Tracking Portal (PTP) empowers Eaton with end-to-end visibility, as well as a direct means for their internal customer service teams and external customers to track freight. The PTP track-and-trace solution is a web-based tool that provides real-time logistics network access and a summary of status updates on any active shipment moving through the Uber Freight Transportation Management System (TMS) within a 90-day range.
A unique Carrier Pro Number is created for all shipments by Eaton, connecting Eaton.com to the Uber Freight TMS for end-to-end visibility which expedites tracking from the origin to LTL shipments and all the way to the delivery’s final mile. For Eaton’s Service Team, PTP reduces a six-step communications process to track and verify shipments with customers.
Eaton’s customer experience is enhanced significantly because PTP is purpose-built with a user-friendly, self-service access to the portal. Customers can check shipments and get real-time visibility since the portal feeds directly from the TMS.
Solution
$174,000 (one truckload compared to four truckloads per month!)
Annual freight cost savings:
83% (reduction in floor spots required inside a 53’ long trailer)
Improved consolidation:
90% (reduction in floor space required to store new parts in the warehouse)
Increased space utilization:
100% (no damage or rusting of new parts reported during quality inspection of inbound parts)
Quality:
