AFS Logistics wins award for generating significant transportation savings for major electrical distributor

Parcel shipment savings totaled nearly $1.2 million in one year, with an additional $238,000 in returned LTL claims in 15 months

AFS Logistics (afs.net) announces recognition from Supply & Demand Chain Executive (SDCE) as a winner of this year’s Top Supply Chain Projects award, which spotlights innovative case study-type projects designed to automate, optimize, streamline and improve the supply chain. AFS garnered recognition for its work with Rexel Group, achieving $1.17 million in total annual parcel savings, streamlining the electrical distributor’s roster of less-than-truckload (LTL) carriers and clawing back over $200,000 in claims for failed LTL deliveries.

The project focused heavily on the satisfaction of Rexel’s customers, and included improving the quality of transportation services to avoid missed or delayed deliveries, and exercising more effective cost management to prevent higher logistics costs from impacting prices. Prior to engaging AFS, Rexel lacked visibility into shipment status, detailed reporting on carrier performance and the processes necessary to get refunds from carriers and quickly provide replacements to customers in the event of delivery issues.

“Getting materials to customers on time is huge in the electrical industry. If customers are missing one part, their entire operation could be shut down for days,” said Travis Gordon, National Transportation and Logistics Manager, Rexel USA. “It is imperative that we have trustworthy carriers and greater visibility in the shipping process.”

AFS equipped Rexel with high-fidelity freight data, implemented a parcel claims audit process and guided LTL carrier consolidation. The claims process puts freight data to work and helps Rexel address the costs of lost or delayed deliveries, with all necessary documentation. For the LTL carrier consolidation, AFS prioritized reliable service in addition to cost, and recommended reducing the number of carriers for each Rexel distribution center by 75%, helping relieve the administrative burden of managing a bloated roster of carriers.

“Despite the complexity businesses face in today’s transportation market, the fundamentals of service and cost remain critically important to the success of any logistics operation,” says Tom Nightingale, CEO, AFS Logistics. “Clients turn to us for the right data and processes to create a foundation for leaner, more effective freight management and ongoing, responsive support for questions and expert guidance in negotiations.”

AFS continues to work closely with Rexel, managing general rate increase (GRI) negotiations with carriers to keep rates consistent and fair. The company also performs regular parcel service and rate audits to verify up-to-date contracts, correct rates, outstanding balances and carrier performance.

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