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Optimizing Transportation and Fleet Management in a Chemical Producer: Driving Cost Efficiency and On-Time Deliveries Across a Multi-Plant Network

Industry: Chemicals

Service: Cost and Value Engineering

Service: Operations Strategy and Transformation

Service: Supply Chain

Parallaxe

Our Client

A leading chemical producer in North America operating 27 factory locations with a diverse transportation network of private fleets, owner-operators, and common carriers.

27

Factory locations

Parallaxe

The Challenge

The company faced rising freight costs and inefficiencies due to a complex, decentralized transportation network.

  • Network complexity: Multiple fleet types across 27 factories post-merger.
  • Lack of visibility: No integrated system or real-time tracking for transportation.
  • Inefficient routing: Decentralized load management reducing truck capacity utilization.
  • Non-standardized processes: Scheduling and dispatching varied across locations.
  • Customer service pressure: Need to ensure on-time, cost-efficient deliveries.

Real Results Achieved Together

By optimizing fleet management and transportation processes, EFESO helped the client reduce freight costs, increase truck utilization, and enhance on-time delivery performance.

$7M

Annual freight cost savings

15%

Reduction in total freight costs

Transformation Impact

  • Standardized transportation planning and load management across all factories.
  • Optimized fleet deployment, trailer utilization, and backhaul planning.
  • Established performance monitoring through KPIs and dashboards.
  • Strengthened operational efficiency and decision-making capabilities.
  • Improved customer service through timely deliveries
  • Real-time transportation visibility via dashboards and performance reviews
Parallaxe

Our Approach

EFESO collaborated with the client to implement a structured transportation and fleet optimization strategy.

Fleet Management Strategy & Baseline Model Development

  • Evaluated fleet deployment and carrier contracts to identify inefficiencies.
  • Developed baseline and target transportation network models.
  • Analyzed freight spend and backhaul opportunities for cost reduction.

Transportation Optimization Initiatives

  • Converted common carriers to private fleets or owner-operators where feasible.
  • Improved trailer capacity utilization and consolidated fuel programs.
  • Optimized shipment flows from closer plants and enhanced backhaul planning.
  • Established transportation KPIs and dashboards to monitor performance.

Transportation Management & Centralized Planning

  • Implemented centralized scheduling and standardized load planning processes.
  • Evaluated and selected a Transportation Management System (TMS) for future deployment.

Related Services

Cost and Value Engineering

Rising costs demand optimization from design through production. We apply cross-functional value engineering, zero-based redesign, and continuous cost tracking to protect margins.

Operations Strategy and Transformation

Helping organizations rethink how they create value. We strengthen performance, build resilience, and accelerate growth across every layer of your business.

Supply Chain

Supplier complexity obscures 70% of your value creation. We strengthen networks through supplier development programs, risk mitigation strategies, and collaborative innovation platforms.

Parallaxe

Facing Similar Transportation and Fleet Management Challenges?

  • Managing multi-plant transportation networks efficiently.
  • Reduce freight costs while improving delivery reliability.
  • Standardize transportation planning and fleet utilization.
  • Looking to implement real-time visibility and performance dashboards.
Contact our experts

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