Increasing performance and reducing fines.
The company was incurring significant costs due to late shipments and routing guide non-compliance. Omni set up a centralized account team to manage all activity that resulted in an increase in on time performance and reduced fines to virtually zero.
Many big box retailers have strict compliance standards that can result in penalties including costly fines up to suspension of partnership. To avoid this, shipments need to be received within set timeframes and according to defined routing guidelines. They were frustrated with their logistics provider because they were constantly receiving fines from the retailer for late shipments. The retailer warned that they may need to reduce shelf space for their products due to the company being unable to meet standards consistently. This could result in hurting their bottom line in addition to a reduction of customer loyalty. Many logistics companies fill up their trucks according to their own timelines and drop their trailers off to save time and money on each truckload. Their situation with their old logistics provider looked like this:
- 50% On-Time Performance (OTP)
- Missed “Must Arrive By Date” (MABD) Windows
- Missed Appointment Deliveries
- Received Hefty Fines for Routing Guide Noncompliance
The company’s relationship with the retailer was on the line and they needed to change course, and fast. In order to do that, they needed a dependable logistics partner that would meet appointment deliveries, get there by MABD, and increase on time performance to keep their good standing at the major retailer.
The company reached out to the Omni Logistics team to see if there was a way to solve their current supply chain problems at the retailers distribution centers. The Omni team got to work and created a solution that would help meet their goals consistently. The team:
- Centralized an account team in Dallas, TX (DFW) to manage all activity
- Implemented Managed Delivery services
to stay in compliance with the retailers requirements including routing guide compliance, MABD, and clean proof of delivery (PODs)
Omni DFW account team implemented the following:
- Setting delivery appointments (Omni never just relies on the delivery office or agent)
- Proactively managing shipments in transit and adjusting delivery appointments as needed
- Never “no show” a delivery appointment
- Always delivering as “live unload”, no drop trailers
- Auditing PODs within 24 hours of delivery
- Ensuring a stamp and correct sign off
- Cleanse PODs and obtain corrected HCPODs
The solutions implemented resulted in an astronomical improvement:
- Improved OTP by 97+%
- Stayed Within Routing Guide Compliance
- Reduced Fines and short pays to virtually zero
Some at the company did not think it could be done, and the costs incurred were a part of their standard business expenses. With Omni’s help, the client was able to depend on having their products where they needed to be and when they needed to be there. The end result saved them time, money, and their reputation.