Chemicals Use Case
Holistic sourcing results in reduced costs
Summary:
When a global leader in chemical manufacturing was looking for solutions to reduce costs on road freight transportation, they turned to the experts at Core Systems. Our knowledgeable team of consultants worked alongside business professionals to identify weak areas that required a new approach. Core Systems recommended a holistic solution that would include consolidating carriers; ultimately leading to more productive price negotiations. The client reaped the benefits of a successfully implemented solution that would end up saving them $2.6 million in annual identified savings and $2.1 million in implemented savings.
The Client: Global Leader in Chemical Manufacturing
As one of the global leaders specializing in the manufacturing of chemical goods, our client has achieved revenues totaling $6 million.
The Challenge: Streamlining to Reduce Costs
Looking for solutions to streamline and reduce costs in their road freight transportation, our client sought the knowledge of Core Systems. Our team of experts consulted with business leaders to precisely identify and isolate areas that were lacking proficiency. With dozens of incumbent and new potential suppliers to vet, our client reached out to Core Systems on recommendations for effectively negotiating transportation pricing.
After successfully implementing the solutions from Core Systems, the client reduced their overall spend by 10%. With the help of Core Systems, our client reported $2.6 million in annual identified savings and $2.1 million in implemented savings.
The Solution: Holistic Approach to Reducing Overall Spend
The experts at Core Systems recommended a holistic approach to sourcing logistical and transportation needs. The team at Core Systems suggested consolidating the client’s carrier base in order to efficiently scale down the pool of potential transporters. This eased the process of price negotiations with carriers in order to reduce transportation rate for NAFTA TL (truckload), LTL (less-than-truckload), bulk, and global shipments.
Results: $2.6 Million in Annual Identified Savings
After successfully implementing the solutions from Core Systems, the client reduced their overall spend by 10%. With the help of Core Systems, our client reported $2.6 million in annual identified savings and $2.1 million in implemented savings. The client was pleased with the seamless application of the solutions offered by Core Systems. Our team of experts were able to complete the project with little disruption to the day-to-day operation of our client’s business.
About Core Systems
Core Systems is a transformation advisory firm focusing on growth, innovation, acceleration, reimaging companies… Therefore, we set high standards, make a difference, show respect, embrace innovation, build open and honest relationships, do more with less, and maintain a posture of humility and grace to all.