Business Case 4PL

A worldwide leader in the Polymer Chemical Industry, with manufacturing facilities in amongst others  The Netherlands, Belgium and Germany, needed to optimize the overall transport costs and to increase performances of its Logistics Service Providers.

The Challenge
The shipper has several sites in The Netherlands, Belgium and Germany from which outbound shipments depart to all destinations in Europe. The shipper was using multiple carriers to transport these shipments to its customers. The shipper is therefore facing complex lines of communications and no transparency, grip and overview on its shipments and carriers.

The Solution: IDS as Lead Logistics Provider
IDS has been appointed as Lead Logistics Provider for Carrier Management and day-to-day Freight Management. The customer is responsible for rate negotiations with the carriers, the selection of the carriers and for invoicing. IDS and their customer agreed to manage the existing carrier-base of the customer to reduce risk of change and at the same time benefit of a centralized and efficient freight-management model.

The solution also includes:
•    Pro-active information flow by IDS to the customer on bottlenecks, exceptions & incident reporting.
•    IDS ensures QOTIF delivery (Right quality, On time, In full)
•    IDS always provides transport capacity. IDS’s own network is used as a backup.
•    IDS automatically consolidates shipments
•    IDS identifies cost saving opportunities
•    100% invoice control
•    Transparent multiple price structures are embedded in the TMS
•    IDS measures, reports the carrier performances and discusses the corrective actions with the carriers.