Specialty Chemicals

Logistics Cost Reduction and Margin Expansion

Our Impact

$7M in Logistics Savings in Under 10 Weeks

Board member reached out to Tenzing with concerns about declining margins, citing increasing logistics costs
Tenzing performed a two-week rapid assessment on intercompany, outbound, and inbound freight, identifying $5M in savings in third-party spend
During the initial scope of the assessment the Tenzing team also found a large opportunity in Outbound Freight Recovery (OBFR)
Tenzing was asked to stick around for another ten weeks to capture the identified freight savings and develop an execution plan for the OBFR

Tenzing quickly engaged truckload and Major LTL carriers, parcel companies, and ocean carriers with RFPs and direct negotiations
During the engagement, the team identified larger issues with production, inventory, and the overall SIOP process.
Currently working with executive team on changes in SIOP proves, reporting metrics, consistency across operations, and culture change

$7M in annual freight savings identified to date
Ongoing collaboration with the commercial team on OBFR, expect opportunity to exceed $6M
As a percentage of revenue, logistics costs have already moved from 7.1 % or revenue to 5.4% of revenue
Beyond the Freight cost savings, even greater value has been delivered as a result of improved internal processes, reduced waste, increased working capital, and having the right inventory on the shelves when customers want it