Cutting Transportation Costs and
Improving Operations
The Problem:
A major candy manufacturer with operations in the Dominican Republic used various vendors located throughout the U. S. to supply it with machinery, parts and candy ingredients. However, the manufacturer lacked the ability to monitor, control and track shipments, which was causing higher transportation costs, delays in deliveries to customers, customs problems and some product line shutdowns.
The Solution:
Associated Global Systems, in partnership with the candy manufacturer and its various suppliers, developed a multi-level solution.
| 1. |
We established a central control point and service center at AGS Miami and set up a dedicated service team for the candy company’s needs. |
| 2. |
The company now provides AGS Miami with copies of all purchase orders placed with vendors in the U.S. AGS now monitors these orders and provides the company with status reports on all orders.
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| 3. |
AGS Miami became the designated assembly point for these orders. A weekly sailing schedule was established to combine all available orders into a single shipment.
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| 4. |
We set up a system to designate orders as "urgent" so goods would be shipped directly from the most efficient and cost effective location based on the origin of the goods. |
| 5. |
All shipments and activities can be tracked online through www. myAGS.com. AGS also developed a specialized receiving and shipping inventory report that gives the manufacturer "real time" online information on goods arriving and leaving the control warehouse in Miami. |
The Results:
The manufacturer reduced its transportation costs by almost 25%, gained control of its orders, improved delivery time to customers, reduced plant slowdowns and eliminated problems with customs.
Next Step:
AGS is working with the company to control orders placed in Canada and to route certain Asian and European traffic through Miami to be assembled with their U.S. origin orders.
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