Revolutionizing Supply Chain Management: How Gerber Achieved End-to-End Visibility and Cost Savings with Digital Logistics Solutions

Introduction

In today's fast-paced global market, effective supply chain management is crucial for success. Companies are constantly seeking ways to optimize their logistics operations, reduce costs, and improve customer satisfaction. One such company that has made significant strides in this area is Gerber, a leading manufacturer of plumbing fixtures. By leveraging cutting-edge Digital Logistics Solutions, Gerber has transformed its supply chain, gaining unprecedented visibility and control while substantially reducing costs.

In this article, we'll explore how Gerber, with the help of innovative Digital Logistics Platform technology, overcame its supply chain challenges and achieved remarkable results. We'll delve into the specific problems Gerber faced, the solutions implemented, and the impressive outcomes that followed.

Gerber's Supply Chain Challenges

Founded in 1932, Gerber has established itself as a prominent player in both commercial and residential plumbing fixtures. With its headquarters near Chicago in Woodridge, Illinois, the company manages a complex supply chain that involves importing thousands of container shipments annually from suppliers in China and Mexico into the United States.

However, Gerber faced several significant challenges in its supply chain operations:

• Fluctuating demand for products
• Limited visibility across the supply chain
• Difficulty in managing customer expectations
• Challenges in optimizing warehouse staffing
• Lack of insight into accessorial costs for last-mile delivery

These issues made it challenging for Gerber to maintain efficient operations and meet customer needs effectively. The company recognized the need for a more sophisticated approach to supply chain management.

The Search for a Digital Logistics Solution

RoxAnne Thomas, Gerber's U.S. Transportation Manager, understood that the company's supply chain operations required a delicate balancing act. She needed to manage various aspects simultaneously:

• Manufacturing processes
• Products in production
• Goods in transit (ocean and rail)
• Warehouse inventory
• Customer shipments

All while minimizing footprint and keeping costs low for buyers. Thomas realized that the key to addressing these challenges lay in finding a freight forwarding partner that could provide enhanced visibility and service.

"Our biggest issue is always visibility of the supply chain," Thomas explained. "We didn't have great data around it, and we didn't have solid KPIs. So it was very difficult for us to know if we were getting what we paid for, or if our rates and timelines were competitive."

Implementing a Digital Logistics Platform

Gerber chose to partner with a Digital Logistics Platform provider that offered advanced technology and data analytics capabilities. This decision was driven by the platform's ability to:

• Connect all parties in the supply chain
• Provide real-time information sharing
• Offer greater visibility and control over inventory
• Deliver higher levels of personal service at both origin and destination

The implementation of this Digital Logistics Platform brought about significant changes in Gerber's supply chain operations:

1. Enhanced Communication and Collaboration

The cloud-based platform connected 26 unique users across Gerber's supply chain, including:

• Logistics team
• Suppliers in China
• Domestic warehouse teams
• Local trucking partners

This connectivity facilitated seamless communication and collaboration among all stakeholders. The platform's in-app messaging feature allowed for real-time exception handling and task management, significantly improving efficiency.

2. Real-Time Visibility

By integrating the Digital Logistics Platform with Gerber's enterprise resource planning (ERP) system, the company gained real-time visibility into estimated container arrival times. Shipment milestones were transmitted automatically, providing up-to-the-minute information on the status of goods in transit.

3. Dedicated Support Teams

The Digital Logistics Platform provider assigned dedicated teams of operations and data experts to support Gerber in both the United States and China. This ensured that Gerber had reliable, on-the-ground support at both origin and destination.

4. Warehouse and Trucking Applications

Gerber adopted additional applications for warehouse and trucking management, which provided deeper visibility into operations from port pickup to empty container return. These tools also offered real-time tracking on deliveries and accessorials from Gerber's trucking partners.

The Impact: Transforming Gerber's Supply Chain

The implementation of the Digital Logistics Platform and associated solutions led to remarkable improvements in Gerber's supply chain operations:

1. Impressive Metrics

• 9.7 million product units shipped
• Less than 1% cargo rolled
• 10% reduction in total costs in the first year

2. Enhanced Planning and Flexibility

The increased visibility allowed Gerber to plan more effectively and adapt to changes quickly. As Thomas noted, "Moving to has given us the ability to pivot, sometimes mid-route, to meet customer demand."

3. Improved Warehouse Management

The warehouse application enabled Gerber's team to plan staffing more efficiently by providing a two-week look-ahead. This improved both inbound container unloading and outbound load planning.

4. Better Vendor Management

The shared platform allowed Gerber to monitor its drayage partners' performance against established KPIs, leading to improved vendor management and performance.

5. Time Savings

Thomas reported significant time savings in her role: "Before , I was spending more than five hours per week dealing with reporting or some sort of accessorial management. Now, I spend so much less time worrying about what's on the water, what's coming in, when it's going to be here, and managing the communications between our team and team."

6. Improved Customer Satisfaction

The enhanced visibility and control allowed Gerber to ensure that the right products were in the right place at the right time, leading to improved order fulfillment and customer satisfaction.

Future Directions: Expanding the Digital Logistics Ecosystem

Building on the success of its Digital Logistics Platform implementation, Gerber is now looking to expand its use of digital solutions in other areas of its supply chain:

1. Customs Brokerage Integration

Gerber plans to integrate its customs brokerage services with the Digital Logistics Platform. This will provide a comprehensive view of landed costs and total delivery costs to customers, all within a single platform.

2. Risk Mitigation and Growth Strategies

In response to increasing economic and regulatory uncertainty, Gerber is partnering with its Digital Logistics Platform provider to develop strategies for supply chain diversification and expansion into new global procurement regions.

Conclusion: The Power of Digital Logistics Solutions

Gerber's journey demonstrates the transformative power of Digital Logistics Solutions in modern supply chain management. By implementing a comprehensive Digital Logistics Platform, Gerber achieved:

• Enhanced end-to-end supply chain visibility
• Significant cost reductions
• Improved operational efficiency
• Better customer satisfaction
• A foundation for future growth and adaptation

As companies continue to navigate the complexities of global trade and evolving customer expectations, the adoption of Digital Logistics Solutions becomes increasingly crucial. Gerber's success story serves as a compelling example of how embracing digital transformation in logistics can lead to substantial improvements in supply chain performance and overall business success.

At FreightAmigo, we understand the challenges faced by companies like Gerber in managing complex global supply chains. Our Digital Logistics Platform is designed to provide the visibility, control, and efficiency that modern businesses need to thrive in today's competitive marketplace. Whether you're dealing with international shipping, customs clearance, or last-mile delivery, our comprehensive suite of digital solutions can help streamline your operations and drive business growth.

Are you ready to transform your supply chain with cutting-edge Digital Logistics Solutions? Contact FreightAmigo today to learn how we can help you achieve the same level of success as Gerber and other industry leaders.