Eliminating Costs with End-to-End Visibility – Hub Group
CPG manufacturer uses Hub Group’s innovative tech to make better business decisions.
Servicing a retailer with strict delivery standards, a niche CPG manufacturer faced the unfortunate choice between taking retailer non-compliance penalties or accumulating rail storage fees. Having minimal visibility to their supply chain, the CPG manufacturer couldn’t plan their shipments effectively and had been incurring costly rail storage fees while shipments waited days for their delivery appointment. This trend continued to accelerate and began to negatively impact budget performance. Wanting to more proactively manage their relationship with their retailer partner, the manufacturer searched for tools to enable better decision making.
Engaged with Hub Group, the retailer quickly found value working with Hub Connect, Hub Group’s online platform for freight management. This platform not only delivered pinpoint GPS tracking of Hub Group’s enormous network of IoT sensor-equipped capacity, it now featured innovative and dynamic ETAs enabled by AI and Machine Learning. Using this information, the manufacturer now had up-to-the-minute shipment insights to deliver more accurate ETAs for their shipments in transit. When a customer identifies a shipment arriving sooner than their initial delivery date, the manufacturer works with the retailer to schedule an earlier delivery appointment, bypassing rail storage fees. By quarter-end, their equipment storage costs dove 53%, helping them stay ahead of their budget.