A major food and beverage company uses third party logistics providers to lower their transportation costs.
Client Challenges
The company needed to reduce overall transportation costs. But, how does one get competitors to collaborate to make needed changes? A major food and beverage company uses several third party logistics (3PL) providers for transportation of their products to their retail distribution channels. Even though there is some distinction based on geographical coverage, the 3PLs view each other as competitors.
ARC's Best Practice Research
- Design research methodology and questionnaire
- Interview appropriate contacts
- Analyze to clearly identify excellence
- Write a report and/or deliver a presentation
- Support with follow-up Q&A research
ARC Solution
ARC researched best practices for the management of transportation costs among several companies. This started with designing the research methodology and developing the questions collaboratively with the company. Interviews with some of ARC's clients and extensive network of contacts were performed. The ARC analyst consolidated and analyzed the results both quantitatively and qualitatively for best practices. These results became part of a thought-leading presentation that included an update on current trends for transportation management applications. At a group workshop with representatives from each of the several 3PLs and the food & beverage company, the presentation became the focus of attention.
Quantified research specific to the issue at hand helps drive team consensus, improves decision-making, and accelerates execution.
Results
The company is well on its way to achieving their target of 7% reduction in transportation costs for a savings $6 million annually. It is human nature that a good example with factual support helps people focus on a positive solution. And, counter productive bickering is avoided. The presence of a neutral third party helped the participants to be non-confrontational and focus on improvements. The workshop was a success.