Client:
This manufacturer produces polyethylene-based products such as plastic wrap and linen bags. Given the low-margin nature of these goods, tight operational efficiency is essential to protect profitability and maintain a competitive position.
Challenge:
The company faced significant challenges due to the lack of a structured logistics strategy. Without a dedicated logistics manager, the team managed approximately 200–220 LTL shipments each month through fully manual booking processes. There was no Transportation Management System (TMS) in place, and the existing ERP system was not being effectively utilized. As a result, the business dealt with inconsistent carrier performance, frequent overcharges, unreliable service, and missed opportunities for cost savings. These issues also created communication gaps across operational, accounting, and customer service functions.
Strategic Objectives:
To address these issues, the company set out to build a stronger logistics foundation that would reduce costs and drive greater service reliability. The primary objectives included:
- Executing a multi-phase logistics improvement program anchored by a structured RFP process.
- Optimizing carrier selection and negotiating more favorable freight rates.
- Establishing standardized logistics procedures and clear performance metrics.
- Equipping internal staff to independently manage logistics data and carrier performance.
- Preparing operations for future system integrations to drive long-term efficiencies.
Approach:
Waypost was engaged to help the company meet its objectives. This project unfolded through a carefully planned five-phase process designed to identify core problems, implement meaningful solutions, and build the internal capabilities needed for sustainable success.
It began with a comprehensive assessment and planning phase, which included stakeholder interviews, and a site visit to document current logistics workflows to uncover pain points and evaluate carrier performance. This assessment revealed critical gaps such as the absence of key performance indicators (KPIs), standardized operating procedures (SOPs), and reliable data tracking.
The next phase focused on carrier strategy and RFP execution. More than 600 shipping lanes and freight classifications were mapped to develop a detailed understanding of the company’s logistics footprint. Tailored RFPs were created for both LTL and TL services, incorporating FAK structures and clear accessorial controls.
After a rigorous screening process, lanes were awarded to selected carriers with a detailed implementation plan over a three-month period.
Implementation and training followed, supported by multiple site visits to roll out new SOPs and strengthen staff capabilities. A customized Excel freight log was developed, and the team received practical training in advanced Excel functions such as VLOOKUP and pivot tables, enabling them to better track KPIs and manage day-to-day logistics activities.
As these improvements took hold, performance monitoring became a consistent practice. Weekly team meetings and monthly reviews kept the focus on on-time delivery, invoice accuracy, and cost metrics. In parallel, structured complaint logging and improved customer communication protocols were introduced to bolster service reliability. The engagement also included auditing invoice discrepancies, recommending tighter ERP and TMS integration, and proposing the creation of a dedicated Warehouse & Logistics Lead role to help sustain progress.
Supplemental Highlights:
- Designed and executed a tailored RFP process that realigned carrier partnerships to match shipping needs.
- Delivered SOPs covering outbound booking, documentation, and issue resolution.
- Developed a freight log tool in Excel and provided hands-on training to enhance data management skills.
Results:
Through this comprehensive logistics overhaul, the company unlocked substantial immediate and long-term benefits. Within six months, it identified $96K in savings—equivalent to approximately $192K on an annualized basis—with additional reductions expected as carrier rates adjust over time. Transportation spending, as a percentage of sales, dropped from 8.84% to 8.05% on outbound loads managed by the company while carrier performance improved thanks to stricter SOP adherence and real-time KPI visibility.
Manual booking errors were significantly reduced by using automated Excel tools and standardized procedures. Invoice accuracy has also improved, supported by systematic auditing and direct carrier engagement. Most importantly, the internal team is now equipped with the tools to manage logistics data and hold carriers accountable independently. Moving forward, the company is positioned to sustain these gains through continued analytics support, quarterly carrier reviews, and growing data literacy—while exploring future WMS and ERP-TMS integrations to drive even greater operational efficiency.