SCO
True or False: The main goal of SCO opportunities are to find cost savings.
False. SCO's are about finding optimizations within a supply chain. We should never lead with using supply chain optimizations as a way to decrease costs as many times finding efficiencies in one area may be a cost increase on transportation but could reduce the hard costs somewhere else.
What carriers can we use for product launch?
ABF primarily, but we are venturing into the LTLB partners for launches
What are some of the benefits of Managed transportation?
Time management/staffing, soft cost savings, order entry/integration, reporting, industry knowledge, 1 contact vs. multiple carriers, carrier communication, load creation accuracy.
How quickly can launch pricing be turned around?
A minimum of 24-48 hours should be expected.
What ways can customers send over orders to our operations team?
Excel file, email, ERP integration, TMS (MG), phone, EDI, API integration
When building out an SCO model for a customer, what are some data points that the Managed team is looking at to determine solution viability?
Can they hold freight, can they directionally load, can they stack freight, is the freight cube or weight dominant, where shipments are going, carrier mix, etc.
What are some other launch types outside of a normal product rollout that the Managed team can help with?
Store Re-Designs, Installation, Product Recalls, Going Out of Business, Business/Warehouse Relocation, New Signage, etc.
Define good data for MTR.
Shipment level data that includes origin info, destination info, weight, class, pallet counts, pallet dims/weight, cube, and ship date. MTR can sometimes help us collect data before going to market or providing a customer rate.
What factors influence the pricing of a launch?
Modes of transportation, level of service (Time Critical), dimensions, ability to stack, etc.
What determines how many analysts are assigned to a Managed Transportation account?
The amount and scope of work, the level of automation, touch points, and the number of vendors/warehouses in the solution (FTE calculators).
What is the ArcBest WH monthly minimum or cycle counts desired for solution to be profitable?
$7,500 per month with a 12 month minimum commitment and high volume cycle turns (prefer >4). 1 pallet storage deals are not preferred.
What are values we add to the customers product launch?
Single point of contact, simplified pricing structure, mode shifting through the network, daily tracking reports, and so much more!
True or False: Customers can't upload their current tariffs.
FALSE- We can upload customers current tariffs through MG. Just need up to date tariffs.
True or False: Pricing Engineers are only assigned to one region.
False. Pricing Engineers are often assigned to multiple regions, handling all sorts of requests that come through such as SCO, MTR, defer, and other.
Define the role of an operations analyst.
They’ll be the go-to, single point of contact managing the day-to-day business, bringing a sense of proactiveness to your supply chain and allowing you to focus more on core growth. They act as an extension of the customers supply chain and gives the customer cost predictability as they grow their business.
When looking at optimization solutions-what are we looking to create?
We are looking to create VALUE within a customer's supply chain by reviewing their transportation modes, links, and nodes within their network.
What information does a load plan contain?
Based on customer information the managed team looks for origin city, state, zip codes; destination city, state, zip codes; dimensions like weight, cube, pallet dimension, shipment lanes, and quantities.
What value do we bring when managing a customer's supply chain?
Our purpose within a supply chain is to deliver value to our customers & impact their final customers. Value means money in supply chain. By using different approaches to reducing waste, reducing variability, and relieving bottlenecks.
If we maintain a smooth and balanced supply chain flow, we will be using the least amount of time, effort and resources and that of course is accomplished by having logical, disciplined processes with excellent communication.
We get to higher quality within a network by measuring processes and using tools to improve consistency. We focus on constraints and how constraints control all the processes around us. Working together to figure out which step is slower from the rest of the system. This will create a huge competitive advantage and resilient for a customer's network.
Describe an example for SCO pricing model.
Examples: CZAR Lite, consolidation pool points, certain states pricing, TL & LTL, etc.
What does the operations team do during an SCO?
Dependent on solution- Manage day to day from shipper to destination
Manage any documents from BOL to POD
Process can include a pool point or Warehouse location
Process can be manual or electronic with 1 or multiple hierarchies
Aware of Pallet count, Pallet dimensions, and Pallet weights
Aware Services Needed (GRD, ARR, IDEL, etc.)
Aware of Delivery Hours & DELBY/DELON Date
Aware of Mode changes and Pricing linked to each (Carrier vs. Customer rates)
Manage carriers to delivery point including loading requirements
Provide daily reporting
And Much More!
How do we add value in a Supply Chain Network (Hint:3 ways)?
Reducing Waste- use least amount of time, effort and resources.
Reduce Variability- having consistency and predictability.
Relieving Bottlenecks- Finding the constraints and determine what slows the rest of the system.
Describe Product Launch implementation.
Award--> Load plan discussions--> make adjustments as necessary--> May reprice if load plan adjusted-->Provide new pricing-->meet operations team-->Discuss expectations-->agree on Go-Live Date-->Finalize back office paperwork-->Implement
How do we quantify the problem for a customer?
Consider the shipments/orders, carriers, or emails/phone calls coming in and include a metric like minutes, hours, employees, cost, etc.
Ex: 30 shipments per day, 2 minutes per quote, 3 day average transit, 90 active shipments, 15-day pay terms 450 invoices to audit, 5 LTL carriers & 2 TL Brokers and time spent on email carriers who are late, dispositions, and PODs.
Describe an example for MTR pricing model.
SAAS only with transaction fee, upload customers current carrier contracts into MG, provide blanket rates through LTLB portal, upload a mix of contracted tariff rates and blanket rates, or conduct RFP for customer specific rates. (Transaction fees or uplifts)
What does Operations team do during an MTR?
Work off design model whether that is SAAS only, SAAS + additional services, or fully managed
Rates set up vary from uploading customers owned rates, going to market via RFP, or using blanket rates, and there are some instances that we provide LTLB platforms through Managed
Manage day to day from shipper to destination
Manage any documents from BOL to POD
Process can be manual or via EDI or API
Extremely customizable from model to programming communication to TMS
Aware of Pallet count, Pallet dimensions, and Pallet weights, Services Needed (GRD, ARR, IDEL, etc.), Delivery Hours & DELBY/DELON Date based on pricing agreement
Manage carriers to delivery point including loading requirements
Provide daily reporting