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Case Studies > World’s Leading Automotive Oem & Supplier Shrinks Freight Procurement Costs by 10% and Saves 75% in Personhours Spent

World’s Leading Automotive Oem & Supplier Shrinks Freight Procurement Costs by 10% and Saves 75% in Personhours Spent

Technology Category
  • Analytics & Modeling - Predictive Analytics
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
  • Networks & Connectivity - Gateways
Applicable Industries
  • Automotive
  • Transportation
Applicable Functions
  • Logistics & Transportation
  • Procurement
Use Cases
  • Fleet Management
  • Predictive Maintenance
  • Supply Chain Visibility
  • Warehouse Automation
Services
  • Data Science Services
  • Software Design & Engineering Services
  • System Integration
The Challenge
The customer was struggling with manual processes throughout the shipments’ lifecycle. They were challenged by poor freight negotiations with carriers and freight forwarders on lack of data-driven insights, and a centralized system to effectively manage multimodal shipments across all the group companies. The top 10 challenges specifically cited by our customer were: Multiple rounds of negotiations leading to error-prone freight procurement, Poor system interoperability and data inconsistencies, Siloed communications between key logistics stakeholders, Poor container visibility for order consolidation, Lack of transparency over market rates and cost deviations, Lack of analytics and monitoring for data-driven decisions, Disparate sources for multimodal shipment tracking, Lack of timely alerts and insights leading to cost leakages, Manual processes leading to higher turnaround times, Inefficient document and invoice management processes.
About The Customer
Our customer is one of the world’s largest manufacturers of components for the automotive and transport industries. With a global presence of 270 facilities in 41 countries, they focus on being a single-window, technology empowering 4PL solution provider for all their group companies with zero service failure assurance.
The Solution
The customer needed an intelligent solution that integrates with their current systems to drive unified visibility and automate shipment processes across companies. Shipsy’s automation-led and ERP integrated, end-to-end international logistics solution met their requirements out of the box. Key Solution Highlights: Enterprise-wide unified portals to create, float, compare, and confirm spots and freight rates, Single platform to collaborate and communicate with internal and external stakeholders for effective shipment execution, Standardized and automated documentation and invoice reconciliation, Automated, multimodal tracking of shipments, Insightful dashboards with advanced analytics and reporting. Shipsy’s International Logistics Management platform was a one-stop-shop solution for the customer to automate and optimize processes — from spot inquiries to advanced reporting — addressing all their shipment management needs. Our smart logistics management platform empowered the customer with: Up to 10% cost reduction in freight procurement, 75% person-hours saved in the overall procurement process, Instant access of rates leading to up to 2 days faster business closure process, A standardized process flow for shipment execution and documentation, bringing down the error rate by 70%, Up to 50% reduction in incidental costs, Up to 2 days faster BL release resulting in an improved working capital cycle, Faster, automation-led invoice reconciliation processes resulting in up to 80% person-hour savings.
Operational Impact
  • Centralized freight procurement for the entire group of companies.
  • Automated spot inquiries, RFQ creation, and follow-ups across multiple freight forwarders and carriers/shipping lines.
  • Single platform for collaboration and communication between shipment stakeholders.
Quantitative Benefit
  • 10% cost reduction in freight procurement
  • 75% person-hours saved in the overall procurement process
  • Up to 2 days faster business closure process

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