Rock Ledge Resources > Bill Driscoll > Representative Project - Private Fleet Rationalization

Private Fleet Rationalization

Business Challenge

A $150 million food manufacturer was concerned about its private fleet utilization and its overall transportation expense. It was leasing equipment from Ruan and employed drivers directly. The most significant issue was whether the company should or shouldn't have a private fleet. Compounding the situation was the fact that some equipment and deliveries required tankers trucks. The company was also coordinating shipping from four separate manufacturing sites.

Solution

To provide an accurate evaluation it was necessary to gather transportation cost data, private fleet cost data (which was not consolidated) and document current processes, controls and how decisions are being made. It was also necessary to gather data regarding equipment leases in order to evaluate not only cost, but competitiveness. A Rock Ledge Resources principal put the data into a "logistics" usable structure in order to be able to present coherent comparisons to senior management. He was able to provide a clear picture of market place costs, a full service evaluation and competitive comparisons.

Results

The Rock Ledge Resources principal showed the company how it could save an estimated 16% of its transportation cost by eliminating the private fleet (recommended in two phases) and by sending an RFP to the carrier marketplace. The consultant also recommended a strategic methodology to mitigate customer risk. The focus was to have employees of the client handle actual implementation. One month after the presentation the company's senior management decided to go with the recommendations and the Rock Ledge Resources principal was retained to implement the program.

Relationships: Bill Driscoll | Operational Excellence | Manufacturing