TranzAct Technologies Client Profile IR is a leading (2001 Revenues $9.7B) innovation and solutions provider for the major global markets of Security and Safety, Climate Control, Industrial Solutions and Infrastructure. The company’s diverse product portfolio encompasses such leading industrial and commercial brands as Schlage locks and security solutions; Thermo King transport temperature control equipment; Hussmann commercial and retail refrigeration equipment; Bobcat compact equipment; Club Car golf cars and utility vehicles; Torrington bearings and components; PowerWorks microturbines; and Ingersoll-Rand industrial and construction equipment. In addition, IR offers products and services under many more premium brands for customers in industrial and commercial markets.
Relentless global cost pressures and a changing portfolio of operating divisions altered the requirements and shipping patterns of IR, creating the need for the analysis and review of North American transportation sourcing. A small corporate group was charged with recommending and implementing a North American process for motor carrier rate negotiations, transportation e-procurement, rate-maintenance, enterprise-wide access and data warehouse reporting.
Rather than using a bureau or carrier tariff, IR built a custom tariff utilizing TranzAct Technologies Customized Tariff (CT) methodology. Multiple carrier base rates were compared and mapped against actual IR lane usage to develop a unique tariff for IR and its’ operating divisions. TranzAct Technologies assisted IR logistics professionals in the carrier bidding process and loaded the resulting rates into StarRate, a web enabled, all modes, rating and routing tool, available to IR personnel enterprise wide in North America. Workflow through StarRate provides a high level of compliance to the negotiated rates and preferred carriers. Carriers were able to bid to their strengths on a lane-by-lane basis across the entire IR North American shipping network. StarLite, TranzAct’s transportation data warehouse is used to monitor and report compliance and costs on lane, carrier, and client bases.
Double-digit rate reductions on a multi-million dollar transportation spend with a preferred group of high quality carriers attest to the effectiveness of the TranzAct Technologies Customized Tariff Creation (CTC) methodology. IR optimized its shipping network spending and carriers bid to their service network strengths. Perhaps more importantly, the results of the process are available on a process driven, enterprise wide basis so rogue purchasing is virtually eliminated. Coupled with TranzAct Technologies’ Rating and Routing application StarRate, Ingersoll Rand was able to realize its contracted savings targets even though IR has in excess of 100 different shipping locations. SKU level shipment detail is delivered to the ERP system for accurate costing and carrier payment accruals. This enables IR to deliver volume to its carriers and service quality to its clients.
Client Case Studies / Focused On Solutions
