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Case Studies > Celestica Enhances Supply Chain Visibility and Reduces Costs with MercuryGate TMS

Celestica Enhances Supply Chain Visibility and Reduces Costs with MercuryGate TMS

Technology Category
  • Analytics & Modeling - Predictive Analytics
  • Functional Applications - Transportation Management Systems (TMS)
  • Platform as a Service (PaaS) - Connectivity Platforms
Applicable Industries
  • Electronics
Applicable Functions
  • Logistics & Transportation
Use Cases
  • Fleet Management
  • Predictive Maintenance
  • Supply Chain Visibility
Services
  • Cloud Planning, Design & Implementation Services
  • Software Design & Engineering Services
  • System Integration
The Challenge
Celestica, a global electronics manufacturer, faced challenges in reducing global transportation costs and improving visibility across its end-to-end supply chain. The company needed a Transportation Management System (TMS) to manage both inbound and outbound freight efficiently. Additionally, Celestica wanted to consolidate contracts on a single platform and automate the selection of the best cost options for shipments. The primary obstacle to achieving these goals was a lack of visibility, which led to higher-than-expected premium costs for shipments.
About The Customer
Celestica is a global electronics manufacturer with a significant presence in the U.S., Asia, Mexico, and Europe. The company manages both inbound and outbound freight and sought to improve its supply chain efficiency and reduce transportation costs. Celestica's logistics operations required a robust software solution to handle its complex transportation needs, including the ability to consolidate contracts and automate cost-effective shipment options. The company values long-term relationships with its vendors and aims to continuously add value through innovative solutions.
The Solution
Celestica chose MercuryGate as their transportation software provider to address their challenges. By implementing MercuryGate TMS and Mojo, Celestica gained better visibility, flexibility, and automation across its supply chain. The TMS allowed Celestica to view freight in transit down to the individual PO and part number level, identify costs incurred on non-conforming transactions, and monitor compliance with routing guides. The integration of MercuryGate TMS with Celestica's ERP provided detailed visibility into transportation expenditures. Additionally, the cloud-based nature of MercuryGate TMS offered flexibility and supported Celestica's growth and expansion. The system's parcel capabilities facilitated real-time tendering of shipments, optimizing costs across multiple modes of transportation.
Operational Impact
  • Improved visibility into freight in transit and supplier inventory, reducing the number of expedited orders.
  • Enhanced cost control and manufacturing/supply base visibility, both domestically and internationally.
  • Seamless integration with parcel providers, optimizing transportation costs across multiple modes.
Quantitative Benefit
  • Reduced global transportation costs.
  • Decreased premium costs for shipments.
  • Improved transportation cost control, directly impacting the company's bottom line.

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