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APPROACH

To address this, the team at Tredence developed an analytically robust approach with the following specifications:

  • Identification of feasible savings opportunities based on current process study, data availability, opportunity size, current IT infrastructure
  • Optimizing through four specific use cases –
    • Minimize overall cost at the level of an entire DDL, as opposed to finding the cheapest alternative at a shipment-level
    • Minimize by bundling the lanes together to aggregate the carrier capacities and allocate in an optimized manner
    • Optimizing pan US DC-drop point network by considering all possible DCs that can fulfill the requirement
    • Putting off sub-optimal shipment to the next day

KEY BENEFITS

  • Solution integration with OTM through APIs – Extracting shipment-requirements and Returning optimal shipment-allocations
  • Tiered structure is followed for complete integration of new solution to the already existing IT infrastructure

RESULTS

  • Estimated savings of ~$20-22M over a period of 12-18 months across outbound shipments, stock transfer orders and inbound shipments

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