How Freightfox Enabled Real-Time Logistics Transformation For A Major Engineering Solutions Provider
11 Jan 2022
5 min read
“Our client, a prominent engineering solutions provider, confronted intricate logistics challenges, such as traceability gaps, procurement complexities, and emissions tracking hurdles. Partnering with Freightfox, our client efficiently automated and optimized logistics processes, fostering heightened transparency, efficiency, and sustainability across their diverse business operations.”
India's electronic components sector is experiencing remarkable growth across diverse sub-sectors, propelling the demand for electronic components in mobiles, telecom, auto electronics, and industrial electronics.
The current production value stands at $11 billion, with a projected increase to $18 billion by FY26.
The electronic products and components market is set for significant value addition, projected at US$6.37 billion by 2024, maintaining a robust compound annual growth rate (CAGR) of 8.17% from 2024 to 2028.
However, amidst this growth, the industry faces challenges in supply chain dynamics, logistics intricacies, and the need for streamlined processes.
Our client, a significant industry player, confronted unique logistics challenges, prompting the quest for innovative solutions to ensure seamless operations and sustained growth.
In the landscape of India’s electronic components industry, our client grappled with a myriad of challenges that intricately shaped their logistics environment.
Complex Logistics Network: Our client managed a complex logistics network across four diverse businesses, involving made-to-order products and variable vehicle types, demanding strategic optimization.
Freight Spend Traceability: Tracking freight spend within the intricate network proved challenging for our client, handling thousands of orders annually. Enhancing financial visibility became imperative.
Procurement Challenges: Limited transport partner availability impacted procurement agility. The process of obtaining quotes over email and finalizing them with a restricted market view introduced increased efforts and uncertainty.
Post-Procurement Visibility: Post-procurement, a lack of visibility in material transit hindered issue resolution and customer communication. Seeking a comprehensive control tower view, solutions needed to be pursued to offer insights into exceptions and delays.
Emissions Tracking and Reduction: Committed to sustainability, our client aimed to understand and reduce Scope 3 emissions from transportation. To achieve this, they had to seek actionable insights to align with broader sustainability goals in the electronic components industry.
Freightfox employed a multi-faceted approach to address our client's challenges in the electronic components industry. The solutions implemented aimed not only to mitigate existing issues but also to enhance overall operational efficiency and sustainability.
Freightfox initiated a transformative approach, introducing an Automated Spot Freight Sourcing system, streamlining quote processes, and automating spot freight sourcing for increased agility in procurement.
To expedite decision-making, Digital Approvals were implemented, utilizing digital means to achieve faster turnaround times and reduced lead times for order placements.
Addressing the challenge of a limited transport partner pool, Freightfox introduced a solution for Transparent Pool Expansion, eliminating freight rate inconsistencies and expanding the transport partner pool transparently and in real-time. This not only provided strategic choices but also ensured fair competition among existing partners.
Administrative processes were streamlined with the introduction of Real-time Documentation, eliminating the need for manual documentation and ensuring real-time availability of all trails accessible at the trip level.
Automation played a pivotal role in Automated Trip Creation and Tracking, where trips were automatically created on the platform, and tracking was facilitated through the driver's SIM location or the FASTag network. This streamlined the process, reduced manual intervention, and enhanced accuracy.
A cornerstone solution was the establishment of an Advanced Freight Management Control Tower. This comprehensive system enhanced transparency, trust, and customer delight. Real-time material and network visibility were provided to customers, with granular data available for each of the over 500 trips tracked through the platform.
Freightfox introduced Proactive Management of Delays and Exceptions, leveraging technology for prompt, responsive actions to minimize disruptions and enhance overall network reliability.
Transporter performance evaluation was automated through the implementation of an Automated Transporter Performance Evaluation system. This involved systematic measurement of critical metrics for 16 Transport Service Providers (TSPs), offering an objective assessment of delivery, responsiveness, quality, and cost parameters.
Addressing sustainability concerns, Freightfox introduced solutions for CO2 Emissions Measurement and Baselines, providing insights into emissions at each factory level or across transporters. This near real-time view allowed for a quantifiable understanding of environmental impact.
Enabling data-driven decision-making, Freightfox provided Actionable Intelligence and Analytics, empowering the client with insights for informed decision-making and strategic planning.
While ongoing in adoption, the introduction of ePoD (Electronic Proof of Delivery) marked a significant step toward digital transformation, promising reliable evaluations of detentions, material damages, shortages, and potential reductions in freight provisions at the organizational level.
The integration of Freightfox's innovative solutions yielded impressive results for our client, substantiating the paradigm shift in their logistics and procurement operations.
Reduced quote turnaround times to an exceptional low of 60 minutes, ensuring agile and efficient decision-making in the procurement process.
Slashed quote/requirement to Truck Placement Lead Time to as low as 24 hours, streamlining the end-to-end procurement cycle and facilitating faster execution.
Strategic choices were enhanced with a diversified and vetted network of over 1000 transport partners, providing flexibility and efficiency.
Over 11% savings were realized through more than 450 spot auctions conducted throughout the calendar year 2023, showcasing substantial value discovery.
Achieved over 70% real-time coverage of Full Truck Load (FTL) and Partial Truck Load (PTL), ensuring comprehensive visibility into the logistics network.
Establishing baselines for plants and transporters enabled the quantification of emissions, revealing a total of 256.6 tons of CO2 emitted by the entire network. This data empowered the organization to proactively reduce these emissions by leveraging trip-level granular data and insights.
Redefining Logistics Standards for a Connected Future
In addressing key challenges, our strategic solutions optimized logistics for our partner and contributed to broader industry advancements. By implementing innovative tracking, visibility tools, and a diverse carrier network, we've set a benchmark for excellence.
This success marks a significant leap towards a more interconnected, efficient, and resilient logistics industry for all stakeholders.
Streamline your logistics operations today
Discover how FreightFox's cloud-based platform can optimize your freight management and sustainability.