Holland-based LeanLogistics asks: How fast can you expect a healthy return on your supply chain technology investment?
If you’re LeanLogistics customker American Hotel Register, the answer is “way fast.”
The supplier to the hospitality industry, American Hotel Register Co., called on LeanLogistics, a provider of on-demand transportation technology and supply chain services, to reduce transportation spending, and LeanLogistics and the customer sy the results have been remarkable.
The company’s new relationship with LeanLogistics takes advantage of three offerings: implementation of On-Demand TMS, LeanLogistics market-leading transportation management system; two, employing LeanLogistics Managed Transportation Services; and three, conducting a LeanLogistics Procurement Event.
“Our goal was to save a gross of $2,000 a day right out of the gate, with the first two months exceeding $100,000," said Ruta Ladd, vice president of distribution and logicstics for American Hotel Register. "That's big savings compared to our total transportation budget. A real surprise was the results from the LeanLogistics Procurement Event, where RFP numbers for next year are exceeding a 10 percent savings. We’re very pleased with that level of savings and return on our investment. The LeanLogistics technology and services are delivering on their promise.”
In addition to implementing LeanLogistics On-Demand TMS, American Hotel Register has a LeanLogistics team managing all American Hotel inbound transportation, including onsolidating loads and tendering to qualified carriers within the transportation cloud. With more than 40,000 products moving through seven distribution centers, American Hotel’s ratio of less-than-truckload shipments was fairly high. By combining those moves into efficient truckload and continuous moves, together with the better pricing afforded by higher visibility to available rates, LeanLogistics was able to significantly reduce transportation spending, achieve higher on-time performance while reducing American Hotel’s administrative burden.
The LeanLogistics Procurement Event, designed to achieve best-in-class status with the lowest operational cost, further reduces American Hotel’s transportation spending by benchmarking rates against the On-Demand TMS network to identify procurement opportunities and out-of-tolerance conditions.
More at www.americanhotel.com or www.LeanLogistics.com.
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