Cement Producer Lowers Freight Rates by 28% in 12 Months

The Challenge

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For a manufacturer of high-quality building products, cement and ready-mix concrete, keeping reliable, real-time shipping data at its fingertips is critical to operational success. The organization delivers between 11,000 and 13,000 shipments per month in specialized truckload pneumatic tank trailers from its production facilities to its distribution centers, its affiliate company and customers located throughout the country.

After moving from a decentralized model for all dispatch functions to a centralized model, the manufacturer was looking to digitally transform its operations and integrate all of its transportation data to enhance its overall visibility and reporting capabilities.

“We were looking for something that would get us out of spreadsheets,” said a truck manager at the company. “After moving all of the offices to one location, we had to figure out a better way to maintain and integrate all of our analytics. We tried several tools, but they were not robust enough.” In 2017, through a recommendation from outside the organization, the manufacturer was introduced to Princeton TMX.

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A TMS That Delivers More Than You Are Looking For

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The company recognized the need for a TMS that could capture data as a load tendering tool. Princeton TMX met its specific needs and provided immediate benefits by enabling them to quickly select the best carrier at market competitive rates. After realizing the initial benefits of the system, the two organizations worked collaboratively to expand the solution and the partnership. “In the beginning, the use of Princeton TMX was intended to be just a tendering tool,” said the manager. “But as we began using it, we realized the tremendous benefits it could have on our entire transportation operations network. The Princeton TMX platform has become a fully integrated tool for our organization with features such as freight rating, tendering, work queues and invoicing, along with real-time reporting. It is integrated with our customer order portal that we convey over to Princeton TMX.”

Overdue payments went from $26,400,000 to only $561,000 using the Princeton TMX mobile app.

In addition to being a fully integrated solution, Princeton TMX has provided better real-time visibility. “The freight is very visible for me,” they added. “Before, I had to try to pull the data I needed out of our SAP system, which was difficult. Now it’s right in front of me. I can easily see the linehaul and fuel surcharge and know what I have to pay carriers, and the carriers can clearly see any load and exactly what they will be paid.”

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A Mobile App That Delivers Better Freight Visibility and Results

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“It’s important to see that the loads are delivered on time,” said the manager. “A lot of the orders we ship are very critical because the facilities we service have low inventory and high turnover. The Mobile App helped us gain that visibility. Now we have a tool in the field where drivers can upload their proof of delivery and complete the loads in real time.”

Access to real-time data has also helped the manufacturer with carrier invoicing and payment. While some of its carriers used EDI to provide real-time data, many did not. As a result, it was often days or even weeks before delivered loads were fully invoiced and paid. According to the manager, “We didn’t want to invoice a customer or pay the carrier until the load was completed, so it just lingered. Real-time visibility into when loads are delivered along with autopay allows us to invoice completed loads faster than if the loads just sat in the queue waiting for the carrier to take action. This allows us to move the cash much faster.”

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Turning Data into Better Business Outcomes

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Today, the partnership between the manufacturer and Princeton TMX has resulted in significant performance improvement in several key areas:

28% Drop in Freight Rates in the First Year: Implementing Princeton TMX not only improved rates for the manufacturer, but the efficiency and productivity gains using better routes contributed to the bottom line with an easy-to-measure ROI.

Quicker, More Accurate Carrier Payments: With the help of Princeton TMX’s Mobile App and autopay, the company no longer has to wait on carrier invoices. The company went from $26,400,000 in overdue payments not collected over 60 days in September 2018 to only $561,000 uncollected over 60 days in August 2023 using the Princeton TMX mobile app.

Enhanced Feight Visibility: For the manufacturer, it’s important to have their shipments delivered on time. With the help of Princeton TMX’s Mobile App, they gain the visibility needed to ensure shipments are delivered correctly and on time.

Centralized Data and Insights: The robust capabilities of the system have enabled the company to maintain its critical shipping data in one location. They are also benefiting from being able to house all of their critical information on Princeton TMX’s platform and use the embedded reporting tool instead of looking within their internal systems for the information.

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A Partnership Aligned for Growth

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As both organizations continue to grow together, they have been able to find new solutions and identify opportunities to streamline processes and realize greater savings and efficiencies.

“Princeton TMX is very nimble in creating the features that we need,” the manager said. “As we’ve grown with them as a customer and our needs have changed, they have been quick to respond and provide new solutions. We don’t have the IT infrastructure to develop these things, but they’ve helped do that for us.” They added, “We’ve worked together for several years so we’ve been able to see the progress we have made with Princeton TMX during that time. The partnership that we have is invaluable.”