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Freight Terms Make an Impact on Profitability |
A Small Fish in a Big Pond
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Wiseco Piston, Inc. is a World Class manufacturer of hi-performance, forged pistons for the snowmobile, motorcycle, ATV, personal watercraft, outboard marine and automotive markets. Wiseco has emerged as a world leading manufacturer of the recreational and racing industries by engineering, testing and manufacturing the finest aftermarket piston available today!
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Like many companies today, individuals within an organization are asked to wear many hats. At Wiseco, the Director of Purchasing and the CFO have been given the role of negotiating and managing the LTL carriers pricing and freight payables. Two seemingly simple tasks that are very difficult to master when only performed as a part time activity. Multiple carriers, rate bases, classes and vendor routing give a small shipper complex problems. How can this small fish swim in a big pond with the security and confidence to out execute its competition in the logistics arena? Tools needed to be employed for the operations team to make fact-based decisions and manage the process, with little effort or cost.
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Enter the Simplified Logistics' team with its turn key solution, Simplicity. The process started with a quick review of the current environment; motor carrier pricing, a profile of the freight and a detailed review of the customers' shipping patterns. Carrier pricing was executed using Simplifieds' leveraged purchase of freight. Within 15 days, Wiseco had selected a core carrier base and began shipping within the program. Carrier pricing and service times were loaded into TrueRate, and now decisions could be made to cost effectively route both inbound and outbound shipments. The freight payment implementation was a snap, bills would now be sent to a specialist who would scrutinize the information providing duplicate protection, freight class, audit and pricing verification.
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A small fish now has the tools of a big shipper at a fraction of the cost. Inbound and outbound shipments are routed with the optimal carrier at a competitive rate. The payables function is smooth and seamless. LTL costs have been reduced 29%. The time and efforts of the Wiseco team can now be re-deployed to other issues within the business.
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