Case Studies
Abbreviated Client List
Top Ten Global Logistics Service Provider
Ocean Strategy and Competitive Assessment
$97B in total 2021 revenues headquartered
CLIENT SITUATION
MCG evaluated all aspects of the client's Ocean Freight Services including products, financials, operations, cost to serve, technology, best practices, and sales management & incentives.
PROJECT APPROACH
Performed a situational assessment of key areas of the business considering both internal and external factors. Completed a competitive gap analysis against industry best practices on key metrics, incorporated customer feedback, and held interviews across all major geographies with key stakeholders from central management as well as regional product owners and key account managers (KAMs).
CLIENT IMPACT
Identified savings of approx. $175M across (5) major categories that included, carrier sourcing, load planning for improved capacity utilization, more efficient order execution by dramatically reducing file touches and subsequently the “cost to serve”, further automated freight settlement, and recommended a targeted sales approach through more competitive incentives aligned with higher margin products/services. Following +10 years of many acquisitions and a resulting patchwork of IT systems and applications both legacy and add-ons, MCG’s efforts finally convinced the client to purchase an advanced OMS/TMS solution from a short-list of vendors.
“MCG brought a deep knowledge and understanding of logistics best practices along with an emphasis on current as well as anticipated market trends. They offer a strong combination of hands-on industry experience, business consulting, and IT strategy to help identify key growth and value drivers. MCG worked professionally and effectively with our teams across various functional areas and geographies to deliver the project on time and exceeding expectations. ”
CLIENT FEEDBACK
Japanese Automaker
Network Optimization Study & Business Case Support
$75B in revenue, one of the largest OEMs in NA by volume of cars produced
CLIENT SITUATION
The client was evaluating whether to continue working under a 4PL (managed services) model or to shift to an insourced or hybrid model by evaluating and implementing a leading TMS.
PROJECT APPROACH
MCG consulted with the client on the latest capabilities and features available from leading TMS vendors. Supported their efforts in formalizing an RFP ensuring all necessary content and requirements were included. Performed an 8-week "proof of concept" with a detailed supply chain analysis on a portion of the client's inbound supplier network within North America.
CLIENT IMPACT
Identified approx. 12-14% savings through the introduction of several new cross-docks and the addition of new multi-stop routes within their supplier network. Also provided a trailer loop diagnostic that produced additional savings in the form of improved equipment utilization. These results helped to secure the necessary budget from headquarters in Japan for a 10-year investment in a leading enterprise TMS.
“Dirk Stammnitz supported us in building a formal business case for a substantial investment in a future IT system, by executing a successful POC, as well as developing a comprehensive list of TMS requirements in order to execute a formal RFP.”
CLIENT FEEDBACK
Multinational Food & Beverage Company with recent Snack Food Acquisition
Ocean Strategy and Competitive Assessment
$9B in revenue
CLIENT SITUATION
Hypergrowth following the client's recent acquisition in the snack food category ($70M in freight spend), led to extensive cost overruns from transportation and warehousing service providers, a general lack of visibility and controls across the enterprise, deteriorating customer service levels leading to increasing lost sales.
PROJECT APPROACH
MCG completed various deep dives into critical areas where the business was underperforming. Improvements included establishing “Available-to-Promise” (ATP) inventory, running a study to determine optimal DC locations considering both suppliers and customers, introducing a dock scheduling solution to reduce carrier demurrage fees and staffing/overtime charges, and developing a financial model comparing “managed services” through a 4PL model versus a hybrid approach utilizing Client’s preferred 3PL partner together with an advanced end-to-end WMS + TMS. MCG produced an effective roadmap prioritizing both short and long-term improvements together with several quick wins to also support future IT CAPEX investments.
CLIENT IMPACT
MCG identified $11.5M in savings across various categories that included warehousing, carrier sourcing, improved order management, dock scheduling, freight cost management, and higher account retention due to improved customer service levels.
“MCG provided a comprehensive and detailed project summary with recommendations. We will certainly stay in touch as there may be some additional work coming off the roadmap. ”
CLIENT FEEDBACK
Multinational Fast-moving Consumer Goods Company
Ocean Freight Strategy for Carrier/Forwarder Sourcing & Operations
$17B in revenue
CLIENT SITUATION
The client was facing substantially higher costs in their Ocean business ($110M in freight spend) due to extremely tight carrier capacity, historic rate increases, dramatically longer transit times, increasing demurrage fees, and declining service levels.
PROJECT APPROACH
MCG completed an extensive analysis of the Client's current freight spend, lane/volume density, carrier and forwarder allocations, rates, and service levels. Assisted the Client in identifying those trades/lanes where a carrier direct model could be considered and implemented, taking a phased-in approach. Shared options with the Client on new sourcing tools and pricing strategies, while also working with NVOs and BCOs on preliminary discussions and negotiations while signaling a definitive shift in sourcing and carrier strategy.
CLIENT IMPACT
A savings of $18.3M was identified from carrier sourcing strategy as well as introducing more advanced shipment planning & consolidation with improved rate visibility and accessorial cost compliance. Client was extremely satisfied with MCG’s measured approach, as in the past they remained hesitant in shifting away from a 100% NVO model. By identifying and prioritizing specific lanes with respective carriers, the effort was focused and deliberate.
“It was a pleasure working with MCG. We were in constant communication throughout and they delivered on the scope and objective of the project. MCG was able to connect us with the right contacts in the industry and helped facilitate those conversations. Overall, we were well pleased with the outcome of the project and appreciate MCG’s expertise, communication, and professionalism.”
CLIENT FEEDBACK
Leading Global Supplier of Technology & Services
Autonomous Vehicles US Transportation and Trucking Market Assessment
$83B in revenue
CLIENT SITUATION
The client was developing some early-stage technology and hardware to several start-up trucking OEMs in the autonomous vehicle (AV) industry. and needed an industry expert to provide them with insights on the current state of the U.S. truck market, primarily from the perspective of technology, including the level of automation and network integration with overall digital maturity. They were also interested in identifying additional areas and opportunities within the “value chain”, that they could serve in the future.
PROJECT APPROACH
MCG prepared a 2-day presentation and workshop covering many of the newest developments in the trucking industry with a focus on technology awareness and adoption. The content was presented to a team of 18 employees, with a wide range of backgrounds and skill sets across the Client's organization, largely focused on strategy, product innovation, and new business expansion.
CLIENT IMPACT
Provided a comprehensive summary of the trucking industry, its digital evolution, market segmentation, as well as current and future trends along with potential opportunities and possible outcomes for AV adoption.
“We had a fantastic experience with Dirk/MCG – he was proactive, very knowledgeable about the space and willing to work with our change in timing. We hope to find another opportunity to work with Dirk again.”
CLIENT FEEDBACK