Technology Solution Offers Increased Savings - SwanLeap
SwanLeap's Artificial Intelligence helped an HVAC supplier increase efficiency and annual savings.
Companies are struggling to stay competitive as supply chain technologies grow into the NextGen solutions today's market demands.
Research Products, an HVAC supplier, was plagued by inefficiencies and overspending due to their antiquated use of a static routing guide. The rules on their routing guides never changed, but variables such as price were constantly changing.
They were also using a mode shift rule to determine whether to ship something parcel or freight based on a weight cut off, all while quoting each shipment manually. This combination was causing missed savings, preventing growth, and wasting their employees' valuable time and energy.
Research Products made the bold decision to move beyond TMS and adopt SwanLeap's NextGen supply chain technology.
The company unknowingly had an erroneous rule in place that said they could only ship with a single carrier in a specific region. Using SwanLeap's carrier optimization feature, the company saved $7,080.94 in the first month by jettisoning the old, and incorrect, rule.
Their mode shift rule was locking them into unnecessary shipping costs because of the system's inability to select a mode without considering weight. SwanLeap's pre-rating system finds the optimal carrier mode regardless of weight—yielding an additional savings of $2,622.73—that's almost $10,000 saved in one month by breaking just two rules.
Additionally, SwanLeap's assisted bidding tool created an immediate $360,000 in annual savings for Research Products. Now, logistics and accounting can focus on customers instead of tasks with confidence in the smart technology driving their supply chain.