KAG Logistics designs an integrated solution to a major fuel retailer’s logistical framework to unlock substantial cost savings and increase operational efficiency.
At a Glance
- Navigating logistical inefficiencies to deliver cost-effective solutions.
- Implementing data integrity measures for sustained operational accuracy.
- Tailoring inventory management to dynamic market demands.
The Challenge
Confronted with the dual burden of inflated accessorial charges caused by split-site delivery fees, minimum load charges, demurrage, and rampant data inaccuracies resulting in an uneven distribution of costs, our client faced substantial profit leakage. The retailer sought out KAG Logistics expertise to design an improved inventory management, ordering process, and invoice reconciliation solution.
Our Strategic Approach
KAG Logistics deployed a comprehensive *managed services solution, focusing on:
- Reduction of split-site deliveries to streamline operations.
- Enhancement of data accuracy to ensure equitable cost distribution.
- Alignment of fuel inventory with fluctuating seasonal demands.
- Design for an improved inventory management, ordering and invoice reconciliation solution.
KAG Logistics’ Operations team identified the retailer’s top offenders for split-site deliveries. After analyzing tank sizes and sales trends, the team adapted the retailer’s ordering cadence allowing for more fuel to be distributed at each site. Within two weeks, the retailer saw a significant reduction in the number of split deliveries.
The retailer faced challenges with site data errors leading to inaccurate invoicing. Mistakes such as incorrect gallon entries and other misinformation entered by site personnel created a significant accounting challenge. To address this, KAG Logistics introduced an integrated reconciliation process. Utilizing KAG Logistics Support Specialists to ensure precise invoicing, KAG Logistics instituted a new reconciliation method, verifying every delivered gallon was accurately recorded and accounted for.
*Managed Services enable companies to outsource logistics tasks—like transportation, inventory management, invoice auditing, and supply chain optimization—to a specialized third-party logistics (3PL) provider. KAG Logistics not only identifies areas for enhancement but also designs and implements customized solutions across your logistics operations. By leveraging our expertise and advanced technology, businesses can achieve streamlined logistics, cost reductions, and enhanced efficiency.
Outcomes Realized
- Reduction of split-sites achieved substantial cost savings in Q1.
- Establishment of a reliable data reconciliation process for enhanced invoicing precision.
- Refined fuel distribution methodology to effectively match market consumption patterns.
