Last-Mile Optimization

While most of us may assume that last-mile deliveries (i.e. ‘milk run’ networks) are cheaper and simpler than long-haul trucking, nothing could be further from the truth. Yes, these routes are shorter than cubing out a cross-country truckload; however, companies typically waste much more time and fuel making constant stops. Without intentional optimization, these networks can easily run rampant with unnecessary expenses.?

A domestic lighting manufacturer and distributor based in the Mid-Western U.S. was previously experiencing many of these issues prior to partnering with Argus. Their JIT deliveries were spread across 100+ weekly lanes, a large portion of which was expedited due to poor supplier compliance. Due to this complexity, their financial reporting lagged behind completed shipments and their trucks were constantly over or under-utilized. They were also unable to track vital packing and part information due to an incompatibility between their TMS and ERP systems.?

Argus was able to strategically solve all these problems while simultaneously reducing overall cost and necessary input. Our proprietary TMS easily integrated with their ERP of choice, allowing the company to keep track of missing parts and information. Additionally, it also gave them real-time tracking for all their ground shipments, something they didn’t previously have. This made it possible for the company to receive proactive alerts about the status of their shipments and make informed decisions immediately. We also consolidated all their suppliers and held them accountable for their scheduled truckload shipments.??

The result? Argus reduced the size of its Milk Run network by 50% which contributed to an overall 15% transportation savings in the first year of partnership. Not only were ground expedites reduced by 30%, but the total number of expedites also decreased by 75%.?