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.
