Increasing efficiency while reducing costs: C.H. Robinson provides flexible, data-driven improvements for tier 1 supplier

Challenge

A leading tier one automotive supplier needed to add efficiencies to their global ocean shipping. They required a flexible solution that would allow them to move freight faster at a lower cost.

Solution

As their proven transportation services provider for more than 5 years, C.H. Robinson utilized the company's performance data to identify improvements. C.H. Robinson identified new strategies for how they could leverage LCL shipping and single buyer’s consolidation services more effectively.

Results

The solution provided the company with increased container utilization and significant cost reduction to multiple global locations, in addition to reduced CO2 emissions.

A leading tier one automotive supplier offers technologies for passive safety, brake, chassis, motion, and motion-control systems. The company needed to add efficiencies to their global ocean shipping that would allow them to move freight faster at a lower cost. With automotive supply chains integrated across different companies throughout, parts must move seamlessly upstream with suppliers to ensure on-time deliveries downstream to original equipment manufacturers (OEMs) and the aftermarket.

Data driven success

As their proven transportation services provider for more than 5 years, C.H. Robinson utilized the company's performance data to identify key strategies for improvement. Because C.H. Robinson had presence across the globe, our automotive logistics experts were able to provide efficiencies for their LCL freight and single buyer’s consolidation services.

Real data, real-time possibilities

To illustrate the potential for savings and to support ongoing success, C.H. Robinson followed a pre-set methodology to identify areas for optimization. We examined the transportation modes and lanes from origin cities to destination ports. We also looked at rates and parameters, in this case C.H. Robinson rates vs. industry and simulated spend. From there, we were able to present the company with detailed comparison scenarios.

Following this particular methodology, C.H. Robinson was able to identify LCL shipments within the company’s transportation data that were moving on the same lanes as the buyer’s consolidation container. This information confirmed two findings:

  • They were experiencing increased costs for the transport of single LCL shipments
  • There was an underutilization of the existing buyer’s consolidation container

Continuous improvement for expanded efficiency

Due to our ongoing relationship with the company, we were very familiar with their business objectives and able to leverage performance data to identify ways to optimize their shipping. C.H. Robinson identified new strategies for how they could leverage LCL shipping and single buyer’s consolidation services more effectively. This model of continuous improvement helped them improve efficiency.

“The automotive logistics experts at C.H. Robinson take the time to really understand our business—offering a variety of scenarios for improvement and showing the potential impact of those changes throughout the years of our relationship. This has allowed us to make more informed decisions about how to keep our automotive freight moving while reducing costs.”

Moving freight faster, for less

The optimizations C.H. Robinson implemented within the company's supply chain delivered up to 28% in cost savings on dedicated lanes, mainly driven by increased utilization of the buyer’s consolidation container and cost avoidance on single LCL shipments on the same lane of transport. In addition, we were able to provide a reduction of 10-15% CO2 emissions on selected simulations per lane of transport.