Regardless of the industry, CGN has proven to deliver benefits to clients such as:
- Reduce transit costs by 25% (2 – 4% net earnings increase)
- Improve inventory by 10-20% (reducing cash to cash cycles by 20 to 25%)
- Drastically reduce focused labor cost through improved transportation efficiency
- Enabled organizations to favorable impact their overall COGS by 3 to 5% with sustainable improvements
The key to unlocking the full benefits of managing these elements is to understand their impact in a vacuum, as a function of each other, and on the organization’s total cost of ownership (TCO). Streamlining your transportation process doesn’t start when you load the truck and end when the customer takes it off, it starts with Sourcing and the Procurement Process to get the best possible strategy and price on the transportation of your critical products or parts.
For both inbound and outbound transportation, CGN has found that effective management must include the following in order to be responsive to changing business dynamics: