Kenco Transportation Management Reduces Transportation Costs by 15% While Increasing Service Levels

Overview

freight

Kenco operates the North American Distribution Center (DC) for a multinational specialty pharmaceutical company that develops and markets prescription and nonprescription pharmaceutical products.  Even though Kenco was managing the company’s DC, domestic transportation was being managed by another Third Party Logistics Provider (3PL).  The manufacturer had a desire to reduce transportation costs while increasing service levels.

Challenge

The manufacturer had been working with another 3PL that was not seeking competitive pricing on the customer’s behalf. Cost per pound was the primary KPI tracked by the manufacturer and they were seeking to reduce it by 15% while improving service time and on-time deliveries.  Rapid growth and the addition of new product lines had also resulted in the need for additional lanes and transportation services.

Solution

The pharmaceutical company entrusted its transportation management to Kenco in order to reach its goals and meet its changing needs.  Kenco transportation management began by reviewing all of the customer’s freight contracts.  Our transportation management team then generated a list of potential providers and managed a formal RFP on the customer’s behalf.  Kenco analyzed rate structures to match lane/pricing strengths to the customer’s needs and then negotiated competitive pricing with the best carriers.  KTM then ranked the preferred providers and developed routing guides to manage the transportation going forward.

Results

Kenco Transportation Management exceeded the pharmaceutical manufacturer’s goals and reduced transportation costs in excess of 15%.  Through our freight auditing services, Kenco also improved service levels, customer communication, KPI reporting, and substantially reduced expedited shipping.

Learn more about how Kenco can partner with your business through our transportation management services or our freight audit services.

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