Case Studies

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Strategic Sourcing, Marketing Services

Transportation Optimization

Merger Integration Synergies

Supply Chain Inventory Assessment

Strategic Sourcing Opportunity Assessment


FEATURED CASE STUDY: TRANSPORTATION OPTIMIZATION

Situation Overview

A new management team of a multi-billion dollar industrial manufacturer saw a significant opportunity for savings in their transportation and logistics area with an annual spend of $20 million. Historically, the company’s savings efforts in this area focused on reducing transportation rates, not on comprehensive optimization of transportation and logistics capabilities. With a complex set-up of three main manufacturing facilities and 13 regional service centers, and significant growth in market demand for their products, the company wanted to find ways to reduce costs while optimizing the way it transported products to customers.

The company asked a traditional consulting company and OnDemand Resources for competing proposals. They awarded the business to OnDemand Resources based on a superior team with deep domain expertise, and a price tag that was more than 50 percent lower than the traditional consulting firm.

Solution

Over an intense eight-week period, OnDemand’s three-person team, led by a former top transportation expert from AT Kearney, deployed a comprehensive methodology based on a strong analytical approach. OnDemand’s team identified multiple savings opportunities across key areas including:

OnDemand’s team worked hand-in-hand with key in-house resources to ensure ongoing project alignment and buy-in.

Results

OnDemand’s team helped identify $4.4 million in savings. The two biggest areas of savings included $1.7 million in savings of direct ship of after market parts from vendors to the company’s customers, and $1 million in savings by ensuring that the company charged customers for freight costs in line with contractual terms. After OnDemand’s team identified significant cost savings, they produced a comprehensive implementation plan that is now being deployed throughout the company.

Customer Quote

"Your team did an excellent job in helping us identify over $4 million in savings!"
– Director, Global Commodity Management