Just-in-time service for just-in-time need

The client:

The challenge:

This metal and glass manufacturer needed to transport their goods on high-volume and business-critical lanes, often with less than 24 hours notice. 

The outcome:

By enrolling in Guaranteed Primary, the manufacturer secured high-quality and cost-efficient coverage for their Just-In-Time operations. Savings were passed directly to the shipper; the manufacturer saved $287K versus market averages without needing an RFP. Guaranteed Primary transparency reports also provided unrivaled transparency into rates, savings, and performance to help guide operational improvements.

Convoy solution:

• Guaranteed Primary

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.

This self-proclaimed “old-school” 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 on high volume and business-critical lanes—often with less than 24 hours notice—remained. Between RFP negotiations the manufacturer turned to the spot market for last-minute freight coverage. Shipping costs quickly added up. Service quality started to slide.

Enter Guaranteed Primary

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—proactively combatting repercussions that would impact the entire manufacturing process—at 100% tender acceptance. The manufacturer’s shift away from long-term fixed contracts for a portion of their freight portfolio enabled them to quickly recalibrate coverage across low and high seasonality peaks.

Predictable tender acceptance rates for the long haul

The manufacturer enrolled 27 additional lanes in Guaranteed Primary to secure high-quality and cost-efficient coverage for their Just-In-Time operations. More than 6,400 shipments have been completed with 100% tender acceptance since January 2022. 

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

They are also exploring shipment batching opportunities and in-depth lane analysis with Convoy to glean high-visibility shipment insights, improve forecasting, and drive cost and operational efficiencies.

Riding the market down

As the freight market softened in 2022, rates were automatically updated across enrolled lanes and savings were passed directly to the shipper.

Between April and September 2022, on one of their most critical lanes, the manufacturer saved $631K versus fixed contract and $287K versus market averages without needing to go through the RFP process. 

Guaranteed Primary transparency reports are also offering valuable insights to help the manufacturer make ongoing operational improvements and stay resilient across market conditions.