Broussard Logistics developed a customized program to help a growing textile company increase transportation and accounting efficiency while reducing costs. Through audits, performance analysis and transportation expense optimization, we were able to reduce expenses in annual carrier savings, logistics payroll and annual freight bills.
Company Highlights
7,500
approx. inventory
13 stores
across U.S
$70 million
annual sales
About the Company
This upholstery fabric supplier specializes in automotive, marine awning and furniture and has a long history in the textile industry. This business grew from a small, family-owned business that manufactured leather goods in 1868 in San Francisco and became a staple of innovation and high-quality material. It consists of more than 250 employees and 19 warehouse and branch locations throughout the United States.
The Challenge
This textile distributor was experiencing growth organically and through acquisition when the National Motor Frieght Classification (NMFC) for textiles transitioned to a density-based freight class, which increased its costs. The purchasing and operation departments utilized four resellers and multiple carrier platforms to meet the shipping needs of its 18 locations. Furthermore, the company lacked benchmarks for negotiating with less-than-truckload (LTL) carriers. These factors burdened the accounting department with excessive carrier invoices.
Our Mission
Broussard Logistics’ mission was to help this textile leader and innovator optimize its processes to adapt to this new growth and build long-term success through improved logistics, purchasing and accounting processes. Through our complimentary analysis and needs assessments, we identified four areas of improvement:
Centralize accounting processes
Optimize carrier rates
Leverage collective spending
Launch transportation management software (TMS) for shipment execution
Solutions
Broussard Logistics industry experts developed a plan to cut down on transportation and accounting costs, including:
LTL carrier assessments: We analyzed the pricing and transit of their original LTL carriers according to their distribution characteristics and freight classifications.
Optimized requests for proposal (RPF): We constructed and executed a formal LTL RPF by optimizing their rates and transit times through multiple bid rounds.
Centralized accounting: We centralized their accounting through our audit and payment services with consolidated invoicing and customized weekly reporting.
TMS launch: We helped optimize their supply chain workflow with our cloud-based TMS, streamlining internal operations and enhancing communication.
Results That Speak for Themselves
Through our five-step engagement process, the textile distributor leveraged its new growth and reduced costs. As a result of working with Broussard Logistics, they enjoyed:
$432,000 in annual carrier savings
$155,000 annual reduction in logistics payroll
$78,000 in annual freight bill pre-audit savings
The optimizations in accounting, logistics and purchasing processes reduced expenses by a total of $625,000.
Explore Broussard Logistics Optimization and Management Solutions
Ensure long-term success for your business with Boussard Logistics’ services. With over 40 years of experience under our belt, we can boost your efficiency and profitability with our LTL and parcel contract optimization, provide transportation management solutions, expert consulting and more!
Get in touch with one of our industry experts and enjoy the Broussard Logistics difference today!
Broussard allowed the business to maintain a competitive edge and remain positioned at the top of the Texas restaurant supply industry.
