When Pilot Chemical Company (www.pilotchemical.com),
a global chemical company producing specialty chemicals
primarily. For the household and industrial detergent and personal
care industries began experiencing, high "cost-to-serve issues
in 2006 with." Its vendors and customers the company, realized it
needed to get a better handle on its freight costs and activities.
.Optimizing Pilot Chemical Company 's Logistics Operations
With five production plants based in OH NJ and, TX and distribution. Facilities
in CA and Europe Pilot Chemical, Company utilizes a variety of freight modes
to globally transport product to. Customers and between plants. Most freight
is, liquid bulk trucked by independent carriers throughout the United States.
.The Company also relies on rail and, barge shipments and uses ISO container
shipments for imports / exports.
While Pilot. Chemical has utilized the services of CLX Logistics to manage
freight payment and automate billing since 2001 freight spend,,, Two years
ago was not, centrally controlled tracked or, monitored. Logistics, control at
that time actually was, distributed. Among, the plantsWith each site operating
essentially independently to each other. As there was no system for mode
comparison and limited. Carrier specificity plants did, things their own way
unaware, of how they may be impacting Pilot 's other plants.
Lacking. Centralized control management relied, on individual plants to provide
data on freight costs. Updating data on a regular. Basis proved difficult as
.Manufacturing personnel were primarily focused on, making product not data
analysis. Without direct access or visibility. To freight data at a, corporate level
management couldn 't accurately evaluate current and potential operations business
.
As. A result the Company, could not account for the cost-to-serve elements of
individual transactions.It could not determine if rising costs were a result of
freight costs by carriers fuel surcharges,,,,, or perhaps a mix Change of using
LTL vs. Other shipping modes. "We didn 't have the technology to efficiently
update load status and capture. Ongoing itemized costs, for our logistics, "notes
Mike Rohrbaugh Supply Chain, Manager Pilot Chemical, Company." We also
.Didn 't have the resident expertise to effectively manage our logistics network.
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