Are your distribution costs escalating?
Problem: Inefficient material flow and distribution network.
Solution: Pragmatek’s transportation and logistics expertise will facilitate a strategic sourcing approach and modify your distribution network to improve transportation efficiencies and on-time shipment.
Read how Pragmatek helped Snap-on to resolve poor logistics management, material planning and an inefficient distribution network that resulted in an $18-million reduction in transportation spend and an $11-million savings contribution from strategic sourcing.
Snap-on Incorporated
Snap-on Inc. is a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks. Products and services are sold through the company’s franchisee, company-direct, distributor and internet channels.
Pain Points & Challenges
- Poor Material Planning and Distribution Network causing:
- Excess Inventory / Warehouse congestion / Inefficient Receiving and Material Handling
- Ineffective management of annual load counts for in-bound freight resulting in excessive transportation spend
- Excessive material and transportation costs
Pragmatek Solutions
- Established and Managed Program Office for Supply Chain, Transportation and Logistics Improvement:
- Implemented Strategic Sourcing Program and Vendor performance reporting to improve Purchase Price Variance and improve On-Time shipment
- Led SKU Rationalization, S&OP and Enhanced Planning teams to improve material availability and flow.
- Designed and implemented Hub and Spoke Network for improved transportation efficiencies.
- Decreased Cost per Hundred Weight through 3rdParty Logistics partner
- Introduced Collaborative Planning, Forecasting and Replenishment (CPFR)
The Payoffs
- 4x Increased Earnings Per Share 2003-2013
- $18M Reduction in Transportation Spend
- $11M Savings Contribution from Strategic Sourcing
- $20M Additional Cost Savings in Logistics and Production
