Automotive supply chain analysis with over $1M in cost savings case study hero

Ground Freight Case Study

Automotive supply chain analysis with over $1M in cost savings

Our automotive logistics client, a truck component manufacturer, improved supply chain processes with help from the Crane Worldwide logistics experts, improving transit times, and improving shipping reliability of their auto parts. Automotive Logistics services available to you, connect with our supply chain experts for an Automotive value chain analysis.

  • Ground Freight
  • Automotive

Proof summary

Project at a glance

Industry
Automotive
Services
Ground Freight

Outcomes

Measurable impact

$600k Results included over $600k in cost savings by eliminating demurrage for contain
$600kResults included over $600k in cost savings by eliminating demurrage for contain

From legacy outcome narrative.

25% Furthermore, future operational improvements will be made to reduce the number o
25%Furthermore, future operational improvements will be made to reduce the number o

From legacy outcome narrative.

Client overview

A leading manufacturer of truck components for assembly and aftermarket use asked Crane’s automotive logistics specialists to reduce international transportation cost and improve reliability.

Project overview

Our automotive client, a leading manufacturer of truck components for assembly and aftermarket application, admitted that automotive logistics experts were needed to analyze their existing transportation processes of their auto parts. The trucking manufacturer were looking for cost reduction improvements in their international supply chain shipments from overseas auto parts suppliers.

Automotive supply chain analysis with over $1M in cost savings case study hero

The challenge

The automotive client’s trade lanes from Europe and Asia into America were being shipped in ocean containers from their supplier’s door to door. The client requested improved transit times and increased reliability of the transit routes as a priority. Cost reduction was of high importance as detention and demurrage were frequently impacting the costs of their existing shipping solution.

Automotive supply chain analysis with over $1M in cost savings — challenge

Crane’s response

Our solution

The Crane Worldwide team identified several areas where improvements could be made to the shipping process in line with the client’s priorities. The solution proposed was to terminate the shipments at the arrival port, transfer the material at Crane Worldwide’s local facility from the ocean container to domestic equipment and subsequently deliver the content using Crane Worldwide’s extensive internal network and equipment in the USA.

“Working in partnership with our automotive clients and identifying challenges enables our automotive logistics team to provide cost-effective solutions.”

Automotive supply chain analysis with over $1M in cost savings — solution

Working in partnership with our automotive clients and identifying challenges enables our automotive logistics team to provide cost-effective solutions.

Robert GulyasGlobal Vice President, Automotive, Crane Worldwide Logistics

What changed

Results & impact

Results included over $600k in cost savings by eliminating demurrage for containers being held at the port that was waiting for delivery. Additionally, detention fees were also removed for ocean containers and chassis while waiting for delivery. Delivery charges were significantly reduced as domestic equipment was being used instead of ocean equipment. Furthermore, future operational improvements will be made to reduce the number of local deliveries by combining inbound shipments on a single trailer with the opportunity to save an additional 25% on inland deliveries.

Ground Freight

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