Case Studies > A ruAN Logistics pArtNership Adds VALue to BoBcAt, Keeps compANy ruNNiNg LeAN

A ruAN Logistics pArtNership Adds VALue to BoBcAt, Keeps compANy ruNNiNg LeAN

Company Size
1,000+
Region
  • America
Country
  • United States
Product
  • Toolcat™
  • Ruan Consolidation and Distribution Center (RCDC)
Tech Stack
  • Inventory Management System
  • Routing Software
  • Track and Trace System
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Customer Satisfaction
  • Productivity Improvements
Technology Category
  • Functional Applications - Inventory Management Systems
  • Functional Applications - Remote Monitoring & Control Systems
  • Networks & Connectivity - Network Management & Analysis Software
Applicable Industries
  • Agriculture
  • Construction & Infrastructure
Applicable Functions
  • Logistics & Transportation
  • Warehouse & Inventory Management
Use Cases
  • Fleet Management
  • Predictive Maintenance
  • Track & Trace of Assets
Services
  • System Integration
  • Training
About The Customer
Bobcat Company is a leading manufacturer of construction, landscaping, and agricultural equipment, including skid-steer loaders and compact excavators. The company operates three manufacturing facilities in the United States, located in Gwinner, North Dakota; Bismarck, North Dakota; and Litchfield, Minnesota. Bobcat's customers rely on its equipment to complete their work and meet deadlines, making timely delivery of products crucial. To address logistical challenges and improve overall manufacturing efficiency, Bobcat partnered with Ruan, a logistics and transportation management company. This partnership aimed to streamline Bobcat's delivery processes, reduce costs, and enhance customer satisfaction by ensuring that equipment reached dealers promptly and in optimal condition.
The Challenge
Bobcat faced several logistical challenges with its three manufacturing facilities in the United States. The company shipped equipment directly from these facilities to dealers, leading to inefficiencies such as multiple shipments arriving at dealers on the same day, tying up dealer staff. Additionally, Bobcat was limited by the number of trucking carriers willing to bid on work due to the remote locations of its facilities. Deliveries were often late, and tracking the specific location of shipments was difficult. Other challenges included less-than-load (LTL) deliveries, where Bobcat was charged for full truckloads despite the trucks not being fully loaded, leading to increased costs. The system was inefficient, and dealers demanded a better solution to improve service and reduce costs.
The Solution
Bobcat partnered with Ruan to address its logistical challenges by utilizing the Ruan Consolidation and Distribution Center (RCDC) in Brooklyn Park, Minnesota. Ruan developed a 'merge in transit' solution, where all Bobcat products headed to dealers east of North Dakota are routed to the RCDC. At the RCDC, products are scanned into an inventory system, and Ruan uses routing software to build efficient loads based on inventory and dealer orders. The software considers various criteria, such as dealership operating hours, distance between dealers, and payload factor, to determine the most efficient transportation routes. This system has eliminated less-than-load (LTL) deliveries, increased payload factors, and ensured that attachments and machines are shipped together, reducing costs and improving delivery times. Additionally, Bobcat owns the trucks that transport products to the RCDC and uses them to bring inbound raw materials back to the manufacturing plants, further reducing transportation costs. The partnership has also increased the number of carriers willing to bid on Bobcat transportation, as products are now shipped from a more accessible location in Minneapolis. Ruan manages the loads and negotiates with carriers to secure the best rates, while the Ruan track and trace system provides real-time visibility of shipments, improving communication with dealers and ensuring timely deliveries.
Operational Impact
  • The partnership with Ruan has led to a 99% on-time delivery rate for Bobcat products, significantly improving customer satisfaction.
  • Bobcat has reduced transportation costs by eliminating less-than-load (LTL) deliveries and optimizing load efficiency through the RCDC.
  • The Ruan track and trace system has enhanced visibility and communication with dealers, providing real-time updates on shipment status and estimated delivery times.
  • Bobcat's logistics operations have become more efficient, with better management of outbound products and inbound materials, ensuring that trucks are never empty.
  • The partnership has facilitated the growth of both Bobcat and Ruan's businesses, with Bobcat launching a new line of compact tractors and utilizing the RCDC for final assembly and shipment.
Quantitative Benefit
  • On-time delivery rate of 99%.
  • Payload factor increased to 117%.
  • Average number of stops per load reduced to 2.4.

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