Northwest Pipe Selects LeanLogistics for Procurement and Managed Services
HOLLAND, Mich.-(Business Wire)-February 5, 2009 - LeanLogistics, a division of CHEP and the global leader for innovative transportation solutions, announces that Northwest Pipe Company has selected LeanLogistics’ On-Demand TMS® and LeanLogistics Supply Chain Services for a holistic re-engineering of their transportation processes and systems.
Northwest Pipe quotes delivered prices as much as a year in advance. (The delivered price is a fixed price but the freight cost component can vary over time.) They wanted to protect themselves from significant freight cost increases that resulted from fuel price fluctuations and other economic conditions. They determined that by developing carrier contracts, they could ensure that estimated freight costs were aligned as closely as possible with the delivery-time rates.
Northwest Pipe and LeanLogistics worked together to conduct a network-wide rate procurement, including implementing carrier contracts and rationalizing the carrier base. The procurement conducted for one Group yielded a significant savings on freight costs. Implementing a core carrier strategy allowed Northwest Pipe to reduce its carrier base which simplified operations and improved service.
“LeanLogistics’ Procurement Services has helped scores of shippers realize significant freight bill savings — many in excess of 10% in the first year,” said Dan Dershem, President and CEO of LeanLogistics. “Benchmarking is the key to significant savings from Procurement; Managed Services is the key to rapid benefits.”
LeanLogistics’ On-Demand TMS® was implemented to centralize Command and Control and to manage transportation holistically, from establishing carrier contracts through payment of freight bills. Northwest Pipe also elected to employ LeanLogistics Managed Services (LMS) as a method to acquire transportation expertise, standardize processes and ways-of-working, and catalyze change.
“We are a perfect Case Study of how transportation can be transformed,” stated Max Beach, Director of Logistics for Northwest Pipe Company. “Our Savings were significantly higher, and our payback was realized four times faster than expected.”
This entire project — the carrier procurement and the On-Demand TMS® implementation — was accomplished in less than 100 days! Northwest Pipe now has visibility into their transportation and management information in terms of metrics, service levels, and costs.
ABOUT LEANLOGISTICS
LeanLogistics provides clients with Transportation Solutions and Expertise to manage their Supply Chain, connect to all their trading partners, and continuously maximize their return-on-investment.
Leveraging one of the industry’s largest transportation networks, LeanLogistics combines technology and services to tailor transportation solutions to the needs of our clients. LeanLogistics develops network-based products for the good of the transportation community as a whole: shippers, carriers, and suppliers — and they are relevant to every shipment every day.
LeanLogistics Supply Chain Services is an innovative and customized combination of software with best practices and business process outsourcing that ensures clients realize maximum value.
Implementation speed is unprecedented and clients realize extremely rapid value, with typical payback in less than one year — Return on Cash™. Clients include Barilla America, Meijer, Ace Hardware, Otis Spunkmeyer, Pinnacle Foods, Rich Products, and Unilever.
LeanLogistics, a division of CHEP, headquartered in Holland, MI, was founded by veterans of transportation and Third-Party Logistics (3PL). For additional information, visit http://www.LeanLogistics.com or call 616.738.6400.
ABOUT CHEP
CHEP is the global leader in pallet and container pooling services serving many of the world's largest companies. The company has nearly 7000 employees and operates in 45 countries. Combining superior technology and an asset base of more than 300 million pallets and containers, CHEP offers its customers exceptional value, a platform that enables reduction in customer product damage, and an environmentally sustainable logistical solution. Supply chains served include consumer goods, produce, beverage, and the automotive industry. With global partners that include Procter & Gamble, SYSCO, Kellogg's, Kraft, Nestle, Ford and GM, CHEP is known for Handling the World's Most Important Products. Everyday. For more information about CHEP, please visit: http://www.chep.com.
LeanLogistics®, LeanAdvisor®, On-Demand TMS®, and WebSettle® are registered trademarks of LeanLogistics, Inc. and Return on Cash™ is a trademark of LeanLogistics, Inc. Trademarks and registered trademarks are the property of their holder.
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