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50-60% Cost Saving: Created A Win-win Situation For A Leading Logistics Company By Combining Processing And Domain Knowledge

About the Client

The client is a leading logistics management solution provider. The client has alliances with several carriers, maintaining contracts with over 110 clients in the manufacturing and wholesale distribution space across the globe, with a focus on the North American market.

The Challenge

The widely distributed network of freight management agents, shipping agents and bulk carrier agents had their customized operational procedures, making the situation complex for Vee Move's client.

Furthermore, the transportation agents could not realize their payments in time due to difficulties encountered while managing and auditing documents.

The client had a Transportation Management Solution, which required that the client employ a huge manpower force to process and maintain the software. The cost of operating this process internally was unviable.

The challenge before Vee Move was to successfully migrate this process. The client was confident about Vee Move's expertise and said, 'We are coming to you for your processing and migrating experience. We have all the domain knowledge that you will need.'

The Solution

The client had developed a beta version of the software. This program integrated various billing systems and interfaces; however it needed to be tested, tweaked, and tinkered to make the software work seamlessly.

Here Vee Move supported the client with its processing skills and skills in Information Technology and affiliated services.

Vee Move successfully tapped areas where the software needed improvement and ensured they ironed out any software bugs. Banking on their Information Technology skills, the team conceptualized and developed software that captured images and integrated with the client's documentation engine. This made the software a robust one.

By processing shipping bills, Vee Move processors became proficient and got up to speed in logistics processing. What made the whole process work was an excellent governance model. This system was set up to manage change-control and coordinate and integrate a different culture. Active participation by both Vee Move and the client ensured that there was a fair understanding from both levels about the goals in mind.

Vee Move chose to process projects at multiple centers with business continuity in mind. The locations were in different seismic, political, and geographic locations as part of the Business Continuity Plan. About 20-30% was allotted to buffer processing capacity at each location with a dedicated business continuity manager.

On the satisfactory completion of the pilot project, Vee Move went live with the client assuring the following key deliverables:

  • Low turnaround time
  • High quality
  • An efficient reporting system
  • Performance credit and debit for TAT/Quality

Conclusion

The key benefits that the client derived while implementing the migration of the operation to Vee Move were:

  • 50-60% cost savings
  • Only Variable Cost was incurred by the client
  • Payments were made on per transactions basis and no fixed cost incurred.
  • No human resources training and turnaround issues needed to be addressed by the client.
  • Timely high quality outputs were delivered.
  • Zero level re-working of implemented operations

This project was a classic case of a win: win solution for the client and Vee Move as this brought together the best of skill sets and knowledge, combining them to produce cost effective solutions with higher quality, faster service, and lower cost. Something to reckon with!

This case was a testament to Vee Move's mantra to 'Derive efficiencies and reduce costs.'