Carrier leverages transformative transportation logistics

Cutting costs, not corners: a success story in reducing freight spend

Carrier Global Corporation, global leader in intelligent climate and energy solutions, is committed to creating solutions that matter for people and our planet for generations to come. It promotes the health and safety of indoor spaces where people live, work, learn and play, and help preserve, protect and extend the supply of food and medicine across the globe. From the beginning, the company has led the way in inventing new technologies and entirely new industries. Today, it continues to lead because it keeps customers at the center of every product and service it offers and acts quickly to exceed their expectations

The situation

Carrier Corporation uses the e2open Logistics as a Service (LaaS) team to plan transportation of goods from suppliers to manufacturing plants. Components are shipping within the US, from the US to Mexico, from Mexico to the US, and from Canada to the US. Goods are being delivered to five manufacturing plants in the US, and Carrier also has plans to extend shipping to the manufacturing plants in Mexico.

The challenge

Coordination with suppliers and the ability to manage inventory and plan production each day is essential for each. However, the logistics planners lacked detailed visibility into the appointment schedule to ensure components arrived on time to meet production requirements. The team also faced challenges with suppliers shipping more frequently than necessary because the Carrier team didn’t have detailed visibility into the appointment schedule. This caused Carrier to have too much inventory on hand, leading to not being able to accept products that were needed for production.

The solution

Carrier Corporation implemented dock scheduling capabilities in the TMS across all facilities where the LaaS team manages inbound freight. Dock appointment scheduling allows the team to view all shipments that will be delivered for the day. The logistics team is even using dock scheduling for 3rd party shipments not in the system for them to be able to request an appointment for delivery to be confirmed by the plants. With dock scheduling, the facilities have avoided or reduced detention, layovers, and rescheduling fees.

The outcome

With these changes, each of the facilities can manage inbound and outbound inventory flows accounting for daily production in a just-in-time (JIT) environment. Armed with inbound component shipment information, dock scheduling is more accurate, and the number of shipments dropped year-over-year in the first two years. Expedited shipments declined by almost 45% with insight into packing list data also housed in the system. Both logistics and production planning accuracy increased, too. Suppliers schedule shipments when components are needed and in specified volumes.

Facilities can now identify loads in the system and if it is a supplier-related expedite, allowing Carrier to charge those suppliers back for the additional costs. By helping you reduce costs and improve performance, e2open Transportation Management and Appointment Scheduling will keep your business moving forward.

Applications
Transportation Management

Services
Logistics as a Service

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