Mapping a route to better supply chain planning

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A large manufacturer deployed innovative new processes and tools to address its shipping and transportation problems, resulting in millions in savings.

Client’s challenge

To address shipping and transportation problems and costs by:

  • Assessing the drawbacks of current-state planning procedures
  • Finding ways to save millions in annual transportation costs
  • Creating a plan to make transportation more agile and flexible

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PwC’s solution

Overhaul the supply chain by:

  • Identifying primary processes and gaps that need to be fixed
  • Developing a three-phase approach to assist in the implementation process and technology changes
  • Creating and helping to implement a tool to automate and improve transportation planning Impact on client’s

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Impact on client's business

  • The company identified six logistics savings opportunity levers that cut transportation costs by 10 percent annually.
  • The new systems yielded a 147 percent internal rate of return and a 13-month investment payback.

 

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"In a fixed supply environment, having flexible and optimized source-destination routing, drove a significant benefit for the business."

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Vinay Couto

Vinay Couto

PwC's Strategy&, Principal, PwC US