Lower Cost Through Supply Chain Efficiency – Unyson
Unyson’s recommendations on ordering discipline improve efficiency at a lower cost.
As a significant player in the food and beverage industry, Unyson’s customer was looking for a way to be more efficient and lower transportation costs. Their customer’s buying patterns were sporadic, resulting in low trailer utilization and inconsistent lane volumes. Poor order predictability also drove service issues with their customers and unexpected rate increases from the market.
By modeling the customer’s supply chain, Unyson was able to better understand the buying patterns of the receivers, identify inconsistent shipping lanes, and understand the cost of underutilized equipment. The model considered lead time, frequency of shipments per month, and average utilization of a trailer. Unyson’s results indicated that managing buying patterns could bring significant efficiency and lower cost. The customer used Unyson’s supply chain model to negotiate terms with their customers, creating incentives to order less frequently with larger quantities per order. This resulted in lower costs due to less volume, a lower cost per pound with larger shipments, and better carrier rates on more consistent, reliable freight.
Unyson’s customer gained improved order predictability and better service at a lower cost.