| Case Study |
972-934-6755 |
Corus achieves 10% target
Eighteen months after uniting its fragmented distribution operation at six processing plants by using Paragon to plan the more complex centralized operation on a daily basis, Corus is reaping the rewards of improved cohesion, control and clarity.
Operating six steel processing sites, each distributing a range of different products to a broad customer base, Paragon was presented with the challenge of bringing together a segregated distribution operation involving a number of independent transportation functions each serviced by different carriers. Not only was there no scope for cooperation and synergy between the fleets, but also the fixed rate structure for each carrier meant that there was little incentive for Corus to improve efficiency. However, with Paragon’s
Integrated Fleets solution, and the introduction of central planning, Corus has transformed its operation into one which views the fleet as an integrated resource serviced by a single carrier.
This strategic change, facilitated by the introduction of Paragon’s Integrated Fleets system, enables Corus to meet its tight daily planning timescale through fast, efficient transportation planning which takes advantages of available synergies by matching outbound loads with available backhauls, thereby reducing empty running.
Announcing the achievement of its target 10% reduction in transportation costs, translating to an average of half a load extra per truck per day, Corus also reports that improved planning has resulted in a 9% increase in the number of promised delivery time windows that are being met. In addition, half its trucks are now carrying one extra backhaul load every day as a result of the system’s ability to identify spare capacity within the fleet. According to Distribution Manager Richard Marchant, "We now have visibility of spare capacity and are able to plan the picking up of in-feed loads from mills, docks and railheads which generates extra revenue for only marginal additional cost."
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