This case study sheds light on how Avalon helped a leading auto component manufacturer reduce primary logistics costs through a comprehensive intervention.
By conducting interviews, pareto analysis, competitor benchmarking, and obtaining quotes from digital logistics vendors and multimodal logistics providers, Avalon identified cost-inefficient routes and explored alternatives such as rail freight transport and domesticated shipping containers.
The intervention addressed challenges including rising fuel costs, shortage of manpower, wastage from empty return trips, fragile cargo handling costs, and low truck utilization. This resulted in significant cost savings of 21% on short haul dispatches and up to 30% on long haul routes, with potential cost savings of 15% by using 40 ft. containerized road transport.
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