TMS Improves On-Time Delivery and Increases Visibility

Technology Category

Platform as a Service (PaaS) - Connectivity Platforms

Applicable Industries

Automotive

Applicable Functions

Logistics & Transportation

Use Cases

Fleet Management
Supply Chain Visibility

Services

Cloud Planning, Design & Implementation Services

The Challenge

Holman Parts Distribution was facing several operational and financial challenges. Operationally, the company was struggling with cost overages due to inefficient carrier selection, poor on-time delivery rates, and a lack of supply chain visibility. Financially, the company was allocating too many human resources to manual freight invoicing and frequently paying incorrect invoices. These challenges prompted the company to search for a transportation management system (TMS) in the fall of 2015.

About The Customer

Holman Parts Distribution is a national OE powertrain parts supplier based in Pennsauken, NJ, USA. The company supplies parts to dealerships and large fleets across the country. As a large-scale supplier, Holman Parts Distribution has a complex logistics operation that involves selecting carriers for different shipping zones, ensuring on-time delivery, and managing freight invoicing. The company operates across eleven U.S. locations, adding to the complexity of its logistics operation.

The Solution

Holman Parts Distribution implemented Kuebix TMS, a cloud-based transportation management system, across its eleven U.S. locations. The system was easy to implement as it is a turn-key SaaS solution. Within 10 days, Kuebix had integrations in place with Holman Parts’ carriers for automated freight audit and pay. The system's rating engine allowed the logistics team to select the best carriers for each lane, moving away from decisions based on 'tribal knowledge' or 'gut feeling'. The system also provided automatic invoice audit, reducing the need for manual freight invoicing.

Operational Impact

Holman Parts Distribution saw immediate return on investment from Kuebix's rating engine as the logistics team began selecting the best carriers for each lane.
The company was able to increase on-time delivery rates by matching the right shipments with the right carriers and quickly reacting to problems like delayed shipments.
The automatic invoice audit feature of Kuebix TMS reduced the need for manual freight invoicing, freeing up resources for other projects.

Quantitative Benefit

Freight savings of $272,000 by selecting the more cost-effective carrier for each shipping zone.
Time to book shipments reduced from eight minutes to just 90 seconds.
Automatic invoice audit reduced Holman Parts’ payroll team headcount.