Logistics optimization and cost savings: CONSOLID.AI case study with Kormotech
Optimizing transport logistics can be a challenging task for manufacturers. Kormotech, a leading pet food manufacturer, faced rising LTL transportation costs, underutilized FTL capacity, and limited access to competitive FTL transportation options. This case study explores how CONSOLID.AI's innovative solution, combining a powerful digital platform and a collaborative network, helped Kormotech optimize its logistics, achieve significant cost savings, and improve overall service levels.
Challenges
Kormotech, a leading pet food manufacturer in Ukraine, faced significant challenges in optimizing its transport logistics. The main problems were: 1) Distribution of small batches through traditional LTL carriers was associated with significant LTL transportation costs. 2) Incomplete utilization of FTL capacity due to insufficient flexibility to find suitable cargo. 3) Kormotech wanted access to a wider pool of FTL carriers to ensure more competitive rates.
Solution
To address these challenges, Kormotech implemented CONSOLID.AI, which includes two key components: 1. The powerful CONSOLID Operational Tool digital platform, which provided Kormotech with centralized access to manage all logistics operations with the ability to receive real-time information to make informed decisions when necessary. 2. Membership in the CONSOLID consolidation network, which opened access to a wide network of carriers and shippers in the CONSOLID.AI ecosystem. This allowed them to reduce LTL transportation costs by consolidating LTL into super-fast shipments. Fill empty spaces in existing FTL shipments with cargo from other participants. Gain access to a wider pool of FTL carriers for competitive prices and services.
Results
After implementing CONSOLID.AI, Kormotech achieved impressive results. Transport logistics costs were reduced by 21%. Significant cost savings were achieved by optimizing the use of LTL and FTL. Service quality reached an exceptional level of 98.2%. The CONSOLID.AI network ensured reliable and efficient delivery, maintaining a high level of customer satisfaction. Kormotech was able to use the network to speed up delivery in certain segments, and in some cases, guarantee same-day delivery. By combining a reliable digital platform with a collaborative network, CONSOLID.AI helps businesses transform their logistics, save money, increase efficiency, and improve overall customer service.
21%
savings on transport logistics
98.2%
service level
Accelerating delivery in specific logistics segments
Kormotech is an international manufacturer of pet food. The company is a leader in the Ukrainian market and is among the top 20 companies in terms of growth rate among global players in the industry.
Industry
Animal feed
Location
Ukraine
Timeframe
2022-2024
