THE TRANSPORTATION SOLUTION
Introduction
The transportation component of the Horizon Logistics “Integrated Logistics Solution” is designed to provide the resources necessary to effectively manage the distribution segment of the client’s supply chain. Core to our strategy is the implementation of an asset light transportation offering which leverages subject matter expertise, mature carrier relationships, and optimization tools - all working together to meet the client’s business requirements. As an asset light provider, Horizon Logistics is not unduly encumbered by end to end supply chain expense associated with the ownership of assets across multiple modes. Accordingly, Horizon Logistics is free to leverage its extensive capabilities in the area of supply chain execution for the benefit of the client. Specifically, this includes the “management” of transportation in concert with the client’s service targets. Accordingly, Horizon understands the importance of managing inventory in transit, achieving the stability requisite to support demand forecasts, minimize safety stock, while maximizing customer reach and committed delivery performance. In aggregate, the Horizon Logistics collaborative transportation management offering will enhance the client’s value proposition, delight customers, and support competitive sourcing strategies.
Operations Management
The Horizon Logistics transportation management system – MercuryGate, automates transportation management activities such as order/shipment consolidation, mode shifting, event management, web based visibility, transactional reporting, as well as the integration of the client’s unique delivery requirements. The execution of this functionality is accomplished through the Horizon Logistics Transportation Control Centers (TCC) configured and domiciled in accordance with the client’s strategic objectives.
Transportation Management System
The Horizon Logistics Transportation Control Center offers a wide range of transportation management processes including but not limited to:
- Carrier selection, negotiation and management enforcing the highest levels of carrier safety compliance
- Transportation optimization, cross-modal utilization
- Improved order and inventory visibility
- Coordinate and manage freight audit, processing and payment
- Measurement of client agreed “success metrics”
- Management reporting
- Cargo claims administration
- Proactive event management
- Collaborative activities in support of continuous improvement
- Reporting and presentation of success metrics
- Synthesis of operations with supply chain providers enhancing strategic alignment
- Enhanced communication between carrier partners achieving reductions to inventory carrying costs through effective event management
- Measurable improvement in customer service relationships
- Establishment of a core carrier program leveraging transportation purchasing
- Solidification of tariff and contract administration
- Management of both domestic and international transportation operations
Simply put - the TCC is the nerve center of the Horizon Logistics transportation solution. All staff members will utilize the wide range of the tools at their disposal to successfully manage the client’s transportation requirements.
Operational Resources
As stated above, the location of the staff in the TCC can be virtually anywhere with the technology available today. Once again, based upon the client’s preference, we will operate the TCC from any location consistent with the client’s corporate objectives. This may include transportation management executed from Horizon’s TCC in Irving, TX, or one of Horizon’s strategically located field offices. In all cases, transportation management activities will be supported by Horizon’s commitment to process consistency and continuous improvement. The client will benefit directly from our team of dedicated logistics professionals who will manage the tactical execution of the client’s transportation services in a manner consistent with customer expectations.
Finally, the Horizon offering includes the commitment to position the right people in the right place – people educated in “supply chain thinking” rather than functional thinking. This embraces supply chain management personnel who are multidisciplinary, communication-savvy, understand net value, and possess the skills crucial to the success of supply chain initiatives.
Continuous Improvement
All services provided for the client will have a written Standard Operating Procedure (SOP) created with client input and approval. We do this so we may be sure to meet defined service and process requirements ranging from shipment planning and execution to actual delivery. This commitment includes the development of a “balanced scorecard” to monitor the attainment of continuous process improvement initiatives. To achieve subject performance gains, Horizon utilizes trained quality teams supported by Logistics Engineers and Operations Research
Analysts from its Logistics Engineering Organization to monitor and continuously improve operations. Metrics are developed dynamically in collaboration with the client.
Should local operations personnel determine that external support will be required to achieve a goal or to improve operations, Horizon personnel from Transportation Operations will become involved. These dedicated managers, engineers and analysts will work with local logistics personnel to identify the root cause of problems, create models of the “as is” and required “to be” services, develop recommendations for improvement, and assist in the implementation of these recommendations.
Business Intelligence
This area offers tremendous opportunity within multiple environments. Shipment optimization, transportation load planning, order visibility, freight audit and payment, management reporting, trend analysis – all represent major areas of functionality that allow the client to benefit from Horizon‘s transportation solution. Access to near real-time information provides the power to control. The more our clients know about their business, the more successful they will be, and the greater their competitive edge.
Finance
The automation of freight auditing and payment capabilities has changed dramatically over the last five years. The primary difference between the freight settlement services of today versus yesterday is simply - technology. New applications deploy user-defined menu systems utilizing highly configurable databases to capture mode and service-specific transactional data enabling clients to manage financial information across modes, service types, and geographies - simultaneously.
Horizon Logistics will insure that transportation transactions are audited against actual shipment activity and carrier tariffs prior to approval for payment. In many cases, this eliminates the need for a post audit relationship, which may cost up to 50% of the total recovery - if the post audit is effectively performed. The entire audit process and related savings has proven to yield as much as 3% of total carrier expense. Again, the financial management of the audit process and absolute savings are part of the Horizon Logistics value proposition.
Benefits
- A defined outcome from utilizing Horizon facilities and business processes to create synchronized load plans. This is in support of engineered distribution channels.
- Best Practices” to be offered to encompass such activities as cargo claims management, effective cube utilization, cargo security, risk management, time-sensitive shipment oversight, and carrier interface. SOP’s to be drafted in collaboration with clients.
- Horizon will offer defined metrics providing a roadmap for process improvement.
- Carrier selection will reflect the strategic alliances Horizon has forged with a select group of carrier providers. This will yield positive results in terms of price, capacity, and delivery velocity.
- Horizon Logistics will draw on the extensive pricing resources of Horizon’s Brokerage Services Group for leveraged pricing.
- The client will benefit from Horizon’s Logistics Specialists who will provide logistics analytics as part of our continuous improvement offering (holistically driving costs from the supply chain).
- Horizon Logistics global reach and holistic supply chain perspective.
Logistics Alliance
Horizon Logistics’ collaborative transportation management offering represents a holistic process that brings together supply chain trading partners, while driving inefficiencies out of the transportation planning and execution processes. The client will benefit from Horizon’s ability to facilitate high levels of interaction between supply chain stakeholders - improving operating performance by eliminating redundancies as well as inefficiencies. We will accomplish these objectives by communicating with the client at multiple levels, developing alignment and trust, as we achieve continuous improvement consistent with the client’s operating strategies.