Just-In-Time (JIT) service for Just-In-Time need

Time is of the essence for one of the world’s largest metal and glass packaging companies. With operations across nearly 90 facilities in over 22 countries—many of which run on Just-In-Time (JIT) manufacturing processes—fast, responsive, and reliable transportation is essential. In order to access high-quality coverage for short-lead time volume, this manufacturer turned to Convoy’s guaranteed tender acceptance program pilot, Guaranteed Primary. See the results they were able to achieve, leading to their decision to expand enrollment.

Expired freight RFP contracts lead to costly repricing

The metal and glass manufacturer had their freight RFP processes down to science. However, as market conditions shifted and contracts reached their expiration, logistics leaders faced frequent and costly repricing. Tender rejection rates and freight RFP administration costs were climbing. Within six months, teams faced four repricing exercises that tripled costs.

The need to transport products—often with less than 24 hours notice—remained. While longer-term contracts were being negotiated, the manufacturer turned to the freight spot market for last-minute freight coverage. Shipping costs quickly added up. Service quality started to slide.

Enrolling to guarantee freight coverage

Recognizing something needed to change, logistics leaders chose to launch a Guaranteed Primary pilot to service short-lead-time tenders on select lanes.

“We’re producing 24/7. We can’t shut the machines off. We have to ship product out so we can make more. I want us to operate in a transparent relationship. I see [Guaranteed Primary] laying the groundwork.” —Sourcing & Transportation Manager, Metal and Glass Manufacturer

In 2021 alone, Convoy completed more than 2,700 shipments across 13 lanes for the metal and glass manufacturer. Shipments helped fulfill Just-In-Time manufacturing requirements with razor-thin lead times with 100% tender acceptance. Because the manufacturer was not bound to a traditional contract, they were also able to quickly recalibrate coverage across low and high seasonality peaks.

Predictable tender acceptance rates for the long haul

The manufacturer has since enrolled additional lanes in Convoy’s Guaranteed Primary program to secure high-quality and cost-efficient coverage for their Just-In-Time operations. More than 1,300 shipments were completed with a 100% tender acceptance rate in the first quarter of 2022 alone. 

Recognizing the value the program offers, this manufacturer has chosen to enroll the majority of their West Coast network in Guaranteed Primary, including several business-critical lanes with an Outbound Tender Rejection Index (OTRI) typically higher than 15%.

The manufacturer also converted their largest lane to be serviced through the program. In order to keep the customer’s costs down, the team has partnered with the director of program management for shipment batching opportunities as well as in-depth lane analysis to provide high-visibility insights and accurate forecasting to the customer to maximize efficiencies on the lane.

Ready to ride the market down

Logistics leaders are also closely monitoring market conditions and exploring ways to save on costs with Guaranteed Primary during market softening. Because rates are automatically updated across lanes enrolled in the program, savings would be passed on directly to the manufacturer without caps or the need to reshop rates.

As the manufacturer and Convoy partner in monitoring the market and optimizing shipping costs, regular transparency reports detailing Guaranteed Primary performance, competitive rates, market comparisons, and shipper savings. The reports are offering valuable insights to guide informed decision making to support ongoing operational improvements and a win-win partnership.

Getting started with Guaranteed Primary

New to Convoy? Let’s talk about shipping with Convoy and saving more with Guaranteed Primary.

Already ship with Convoy? Get in touch with your account manager.

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Viv Luu
Viv (she/they) drives B2B product marketing for Convoy’s dynamic pricing programs. She previously led go-to-market and expansion strategies for AI-assisted solutions at a leading fintech company. She also spent +10 years growing marketing programs with brands including Adobe, Microsoft, IBM, and NIKE.