The Challenge
Our client saw increasing inland distribution cost in their IPI model as the industry faced space and equipment challenges. Increased delays at rail and with inland carriers drove delays and increased costs.
Knowing container location and ETA was difficult, and there were too many instances where goods locations could not be pinpointed and expected arrival dates could not be established.
Customer satisfaction was suffering, missed expected delivery dates and resources required to support the process were mounting. Delays in delivery impacted cash flow and corporate objectives.
Why MITCO
The MITCO solution was focused on three main components, Technology, KPI’s and Process. By utilizing the MITCO PO Manage Program, developing automated data feeds, defining improved processes with customer KPI’s and real time reporting, we created a solution the client found compelling.
MITCO Solution
MITCO’s transload (consolidation) program changed the imports to CY West Coast Port. At the MITCO DC goods were consolidated into intermodal trucks, yielding a 3-2 ratio. The KPI defined was goods- ship within 72 hours of release, with an outbound CBM metric 90+ and a total transit commitment.
On the water data is imported into PO Manage, MITCO proactively manages pick up and deliveries, while updating container status. The distribution team developed SOP’s for loading trucks. Container contents and outbound details all available real time on MITCOglobal.com.
Transportation developed a carrier solution that managed the final mile delivery to the customers expectation, including a solution to smooth delivery volumes in peak times, and reduce inland cost.
Additionally, the MITCO solution included a dropship program, allowing the client to allocate inventory in transit, and to fulfill customers in the western 11 states. Inventory and orders were visible in MITCO portal, managed to the Must Deliver by dates, with CS support routing support.
The Results
MITCO being accountable for all legs of the supply chain, and commitment to the clients defined KPI’s, delivered the improvements the client was seeking.
Visibility- From on the water, through delivery to their warehouse the client was able to have visibility to inventory flow from a single portal, by Item, PO or by container.
Operational Performance- Meeting KPI’s, eliminating manual tracking, and reducing the warehouse deliveries produced the efficiencies and reduction in landed cost objectives.
Speed to Market- Goods destined to the customer DC arrived on time. Efficiencies in the consolidation process improved dock to stock, and the dropship program cut 7-10 days from the supply chain.
Costs- Reduced Landed Cost, Elimination of Destination Delivery costs and Accessorial, elimination of a leg of transportation costs through dropship provided significant Cost of Goods savings.
As a result, our client now has lower import costs, a more reliable operating platform to keep up with its buyers and customers’ demands and to ensure efficiency and dependable supply chain.