Tier 1 automotive supplier partners with C.H. Robinson

Challenge

A leading tier one automotive supplier, needed to move a high volume of freight quickly when one of their major logistics providers was having service failures. They also required a solution that would drive continuous improvement and minimize unnecessary costs in the future.

Solution

As a preferred transportation services provider for the company's inbound freight, and with a proven ability to flex in any market, C.H. Robinson quickly developed and implemented a dynamic retail consolidation solution that addressed their immediate need to move freight off their docks. C.H. Robinson then began to identify mode neutral opportunities for consolidation, aggregation, and optimization to provide continuous improvement.

Results

The solution has provided significant cost avoidance, increased trailer utilization, and improved on-time performance to key automotive retailer locations.

$1.3M+ cost avoidance on baselined shipments
$288+ saved per order
~55% cost avoidance per order
$165K in annualized savings through optimization and continuous improvement

A leading tier one automotive supplier offers technologies for passive safety, brake, chassis, motion, and motion-control systems. Within the aftermarket space, the company supplies products to well-known automotive retailers. When faced with service failures from one of their major logistics providers, the company needed an immediate and ongoing solution to move a high volume of freight at lower costs.

Service and agility in a dynamic market

Due to their high-volume of freight on hand, the company was heavily impacted when a major logistics provider was having service failures. A solution was needed to quickly move existing freight off their docks.

Working with a provider without space on their dock to provide shipment aggregation opportunities, multiple POs were being sent on different bills of lading (BOL) to the same destination. This resulted in every PO being assessed a minimum charge. Without opportunities for dynamic savings on truckload shipments, they were spending more than necessary to move their freight. A solution was needed to quickly move freight on hand, as well as address unnecessary costs moving forward.

Quick action and continuous improvement

With speed being the company's top priority, C.H. Robinson automotive experts were quickly able to implement a flexible solution that had freight moving almost immediately. Leveraging a strong consolidation network of retail customers, C.H. Robinson provided consolidated pricing to the company at a discounted rate to drive savings. This enabled them to decrease the number of shipments and increase trailer utilization.

The program leveraged a drop trailer strategy, where freight is routed to C.H. Robinson warehousing locations. From there, the wide array of preferred contracted LTL carriers enabled C.H. Robinson to offer multiple routes and modal conversions to choose from. A multimodal strategy also provided them with the opportunity to adjust the mode based on arrive by dates.

Within the first week of implementation, C.H. Robinson began discussions with the company regarding consolidation, aggregation, and continued optimizations. Leveraging our leading tech, we were able to visually compare strategies, allowing them to see the impact of different modes on both price and service.

Optimization now and in the future

With flexibility and continuous improvement top of mind, C.H. Robinson was able to provide support for the company in both the short term and on an ongoing basis. After quickly developing and implementing a plan to move freight on-hand, focus shifted from speed to cost-savings. C.H. Robinson was then able to use our mode neutral capabilities and deep bench of preferred contracted carriers to identify ongoing opportunities for optimization. This resulted in promising initial results for them, with ongoing opportunities for improvement:

$1.3M+ cost avoidance on baselined shipments
$165K in annualized savings through optimization and continuous improvement
$288+ saved per order
~55% cost avoidance per order

“C.H. Robinson acted fast to provide us with a flexible solution that not only addressed our urgent, short-term needs, but also helped to support our long-term business goals. They understand the automotive supply chain.”