Monroe Truck Company
The Client
A leading manufacturer of snow and ice removal equipment, truck bodies, specialty trucks, and fire apparatus equipment.
Needs
- Review current business practices, transportation modes, and cost analysis
- Evaluate delivery of inbound parts, raw materials, and outbound product
- Analyze process flow from order placement, through production, to point of final delivery
- Review administrative processes and provide recommendations for simplification resulting in an enterprise wide impact
- Conduct a load optimization study
- Identify avenues of cost reduction & containment
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Challenges
- Reviewing accurate data and support documentation from multiple sources
- Understanding the process and procedures of a decentralized company with multiple locations
- Implementing a reporting system, providing visibility to accounting, purchasing, customer service, shipping and senior management
- Developing a process by which partial orders are shipped upon completion in a cost effective manner
- Secure stable pricing in a volatile market due to a lack of capacity and escalating fuel costs
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CRSTL’s Solution
- Provided an in-depth analysis of costs by transportation mode and individual cost centers
- Created a web-based reporting system “On-Target-Tracking” allowing the customer to track shipments in transit, validate costs, customize reports by department and download imaged documents
- Converted the billing process from individual freight bills to statement billing submitted weekly with favorable payment terms
- Established a “partial” load pricing with guaranteed delivery times
- Implemented a “guaranteed” pricing schedule for a period of one year to eliminating the pricing variable
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Results
- Reduced transportation costs by 10 percent
- Provided a on-line reporting tool by which each department could access and develop customized reports unique to their individual needs
- Created web site access for shipment visibility
- Implemented partial load program enabling the shipper to move finished product that previously would be placed in inventory, delaying delivery to the end user (customer)
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