Powering Up a Better Supply Chain
At Aggreko, the focus is to ensure that business is always on by delivering power, cooling, and heating equipment and services anywhere they’re needed so businesses can grow and communities can thrive. The company operates in high-stakes environments to deliver emergency solutions to customers including utilities, municipalities, petrochemical companies, refineries, and manufacturing firms.
Aggreko was struggling with gaps in shipment payment data and needed better visibility, accuracy, and supply chain efficiency. “Every time we sent a shipment, we were almost starting from scratch; we were constantly in reactive mode,” explains Chad Thibodeaux, Aggreko NAM Transportation Manager. The company also wanted technology to help manage its complicated transportation network, improve procurement processes, and manage vendors.
“We’re high-maintenance,” quips James Hoogendoorn, Aggreko NAM Logistics Manager. “We needed a provider that wouldn’t be scared off by that. We wanted a logistics partner with the same intensity-driven mindset as ours.”
Aggreko found an ideal partner in RedStone, a Kansas-based third-party provider (3PL). “RedStone didn’t run from our challenges,” Hoogendoorn says. In addition to the experienced RedStone management team, Aggreko gained access to the RedStone Latitude technology solution. Latitude provides real-time information for tracking and exception management, sophisticated reporting and analysis, as well as a best-in-class transportation management system (TMS).
Thibodeaux describes their partnership with RedStone as a major success: “We now have a tailored solution that captures data for every shipment and provides full visibility to crucial information such as length of haul, type of truck, dollar-per-mile cost, etc.”
RedStone helped Aggreko re-align procurement strategies by conducting a sweeping analysis to find opportunities for cost and performance improvements throughout their vendor network. Today, Aggreko and RedStone work together to continually analyze procurement effectiveness, identify ongoing opportunities, and find new vendors.
Nailing down accurate freight rates got easier as well, thanks to the custom freight calculator RedStone created for Aggreko. “We’ve always struggled with pricing freight accurately because we operate in many different markets using many different vendors,” Thibodeaux notes. The Aggreko team now uses this custom calculator as a quick, easy way to provide freight quotes.
RedStone also streamlined freight-payment processes by taking on accounts payable duties. Instead of paying hundreds of vendors, Aggreko makes one payment to RedStone, which manages individual payments.
With closely aligned philosophies, Aggreko and RedStone have developed a strategic partnership that supports the Aggreko mission. “When facing crisis events, our customers count on us to engineer solutions that allow them to continue being productive,” explains Hoogendoorn. “Ultimately, RedStone did exactly the same for us.”