With more than 17 years of experience in the 3PL industry, 3PL Links has worked with a wide range of companies. One specific account holds the title as one of the world’s largest steel producers with an annual crude steel production of over 80 million tonnes. With a philosophy to produce safe, sustainable steel, it is one of the leading suppliers of quality steel products in all major markets including automotive, household appliances, packaging and construction. With offices and manufacturing facilities throughout the world, this manufacturer has many complex solutions that reach beyond borders.
With their primary customer relocated to Mexico, 3PL Links’ customer was faced with numerous obstacles, including, but not limited to, the possibility of major production modifications after many years of production. With the cost of shipping increasing to approximately 1166% of its original cost, and travel time increasing by 400%, they were looking for any form of logistical relief.
Since the company’s beginnings almost 17 years ago, 3PL Links has been committed to making things as easy as possible for our customers by understanding their needs. While the customer’s Tubular division faced tighter budgets, they wanted to maximize the investment they made in their Canadian infrastructure while minimizing costs where possible. To that end, 3PL Links approached them with an innovative system solution that added value to everyday operations and helped reduce cost, create efficiencies in shipping and sustained product quality.
Before the solution could materialize, 3PL Links had a series of consultative meetings with their customer to identify and illuminate all their logistical challenges. Through these consultative meetings it was determined that the customer’s challenges went beyond a cost and delivery time increase.
3PL Links worked closely with them to discover that:
The pilot project exceeded all expectations and 3PL Links obtained transportation savings of approximately 26% greater than their customer had hoped for. Further to that, the customer has gained complete visibility of their entire distribution network from Ontario to Mexico. Customs delays have been all but eliminated and the product is arriving to their customer as it is intended to.
With over a year of partnership underway, 3PL Links and its customer have witnessed continued success with 3PL’s organic solution. The generation of this solution proved challenging, however. Due to massive volume and very specific handling requirements, the solution required some logistics fine-tuning. Upon delivery, these tubes could not have any rust, scratches, or wear of any kind. An exclusively over-the-road solution would be ineffective, as too many different carriers would be needed to handle the volume.
The needs of any business are constantly altered as the demands of the market evolve. The 3PL Links team has continued to work closely with its customer to evolve and expand their logistics solution to match their everchanging needs. As new technologies are made available, 3PL Links has fostered new and different relationships in order to provide the best possible combination of our best-in-breed partners. This has allowed 3PL Links to drive costs even lower, cutting an extra 18% off the transportation costs and improving the customer’s bottom-line even more. This ongoing organic customization has resulted in an excellent relationship between these two companies, with 3PL Links acting as a valued member of the team.
This dedication to our accounts also allows 3PL Links to stay out in front of changes in the marketplace. For example, as the Mexican government continues to alter their regulations on shipping, the needs of this solution become even more specific. Furthermore, rapidly evolving container and transportation technology and an incredibly competitive marketplace put ongoing pressure on the needs of the customer’s logistics solution. As these challenges arise, 3PL Links continues to flex the muscles of their growing network of valued partners, never dropping the ball or missing an opportunity to improve price and service.
We saw a reduction in logistics costs by as much as 7 to 8%. These numbers are huge and they help to make CNB Computers competitive in a very tough market.
– Bony Chhabra, Managing Director at CNB Computers
"We saw a reduction in logistics costs by as much as 7 to 8%"