Standard Routing Guide and VICS Program
Kuebix’s team will help publish a routing guide to establish a set of preferred LTL carriers, along with a set of inbound rules for suppliers to follow. This enables pricing improvements, superior service levels and maximum opportunities for consolidation. Additionally, a comprehensive set of Vendor Inbound Compliance Standards (VICS) that must be followed by suppliers when making deliveries to facilities will be implemented to off-set the cost of violations. The goal is to improve supplier behavior to drive out supplier related inefficiencies at the distribution center. All violations are deducted directly from the invoice via the portal to ensure compliance.
Convert Vendor Delivered to Customer Pickup
With the help of Kuebix’s managed services team, convert inbound shipments from vendor delivered (VDS) to customer pickup (CPU) where feasible. Doing so increases efficiencies at the distribution center and allows for better rates to be negotiated with carriers.
Consolidation of LTL Shipments
When a smaller set of carriers is standardized, loads can be consolidated as a regular practice. Unloading 10 – 14 LTL shipments can be five times the cost of unloading a single truckload. Savings from consolidated shipments and drop trailer programs can be shared between the customer and the supplier, not to mention the increased efficiency.
Rate and Unloading Allowance Program
Kuebix will administer and integrate a dynamic rate and allowance program to reduce the cost of goods. Allowances can be structured using actual carrier rates and unloading costs, and these costs can be deducted from the invoice directly through the portal. This program ensures the lowest cost of freight for all parties and can be easily executed and maintained, resulting in far better visibility to a dynamic environment, the ability to increase inventory turns and an overall reduction to cost of goods.
Scorecards and Analytics
In the form of reports, dashboards and scorecards, SupplierMAX programs provide analytics on the cost of freight, unloading costs, supplier and carrier performance, and much more. These analytics enable the logistics teams to measure the results of the program and take action to improve service with suppliers and carriers whose behavior is not meeting expectations.