Case Studies > Logistics Provider Closes More Business, Develops Stronger Customer Relationship

Logistics Provider Closes More Business, Develops Stronger Customer Relationship

Customer Company Size

Mid-size Company

Region

America
Europe

Country

United States
Belgium

Product

E2open Transportation Management Application

Tech Stack

XML-based API

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Customer Satisfaction
Productivity Improvements
Revenue Growth

Technology Category

Functional Applications - Transportation Management Systems (TMS)
Application Infrastructure & Middleware - API Integration & Management

Applicable Industries

Chemicals

Applicable Functions

Logistics & Transportation
Business Operation

Use Cases

Fleet Management
Predictive Replenishment
Supply Chain Visibility

Services

System Integration
Software Design & Engineering Services

About The Customer

A global logistics and transportation service provider (LSP) for the chemical and process industries works with a network of carriers and provides managed logistics, third-party and consulting services to clients such as Procter & Gamble, BASF® Chemtura® and Dial Corporation. With nearly 300 employees, the company is headquartered in Connecticut and has offices in North Carolina, New Jersey and Belgium. The LSP was looking to expand its global operations and, with its international customer base growing, the company also recognized it needed to automate its contract management and pricing process.

The Challenge

In thinking about what the company would need to meet its growth objectives, the logistics team realized the current process itself created a clear barrier to growth because it wasn’t scalable. Essentially, the team needed to manually look up contract and rate data for each new transaction. “We are expanding our business into international markets, adding new contracts and rates, and therefore needed a fully automated process that allowed us to handle more quoting without having to hire additional staff,” said the company’s SVP of Global Marine and International Logistics Services. Additionally, the growing company wanted to upgrade its service offerings by integrating an automated system into its own solution platform that would allow its customers, with little or no experience in pricing, to compare full bottom-line rates across multiple service contracts on their own.

The Solution

After a comprehensive vendor evaluation, the logistics provider selected a transportation management application from E2open to automate its contract management process and provide its customers with flexible and competitive routing and rate options for international shipments. This web-based application manages costs, automatically generates quotes and proposals and helps companies comply with tariff filing requirements. The logistics provider chose a platform that would enable the company to centrally manage its ocean service contracts, describing every term with a powerful rules engine to create “calculable contracts.” The platform looks at various options for route combinations in conjunction with potential tariffs that would apply if those routes were selected. This empowers users with little or no experience in pricing to compare full bottom-line rates across multiple service contracts, modes of transport, routings and service levels. The logistics provider also integrated the E2open transportation management application with its own branded platform using an XML-based application programming interface (API). This allows users to check an ocean rate stored in the E2open platform without leaving the logistics provider’s system.

Operational Impact

The logistics team can now manage contracts and amendments centrally, maintain an approved carrier list and securely share contracted (or tiered) rates with agents.
The company significantly differentiated its offerings by enabling customers to compare alternative routing options and total bottom-line costs, including base rates and all additional charges, to optimize carrier selection.
The company was able to grow profit margins by applying mark-up rules and adding other value-added services such as documentation fees.
The secure, centralized repository of ocean freight rates and service information equips the logistics team to compare shipping options based on cost and service parameters and ultimately optimize carrier selection for its customers.
The platform stores all quotes and details so the LSP can analyze customer trends and margins to improve performance even more as it continues to grow internationally.

Quantitative Benefit

The company can handle additional customers and more requests from each customer without needing additional staff.
The logistics team can quickly prepare accurate rate quotes and help clients handle complex rate requests.
The LSP can compare full, bottom-line shipment costs (including all applicable accessorial charges) side-by-side prior to booking, allowing the company to capture cost savings for its clients.