Case study

Transplace Processes and Technology Help Leading Materials Manufacturer AcHieve cusToMers service GoALs And Produce BottoM Line suPPLy cHAin sAvinGs
For more than 100 years, Chicago-based USG has been a leader in producing innovative products and systems to build the environments in which we live, work and play. As the inventor of wallboard and ceiling tile, USG created North Americas modern building materials industry. USG products are used in everything from major commercial developments and residential new home construction to simple home improvement projects. Flagship brands include SHEETROCK Brand gypsum panels and DUROCK Brand cement board, which are recognized around the world. USG is also the worlds leading producer of gypsum wallboard, joint compound and a vast array of related products for the construction and remodeling industries. The USG family of products provides creative building solutions that set new standards for productivity and efficiency, helping contractors and architects deliver high quality and innovative designs.

USG was established in 1902 and headquartered in Chicago. Worldwide employees: 10,000+ LEED CI Gold Certified Project*
(*Currently LEED CI Gold Register Project awaiting approval)

Anticipate, Innovate, Execute

Transformational and sustainable technologies leader

Challenge
USG was in need of a set of innovative solutions to meet their unique transportation challenges. These challenges included communicating with a large base of medium and small flatbed motor carriers spread throughout the US, in a highly fragmented freight marketplace. Additionally, USG faced several large-scale issues such as a sizable manufacturing network, specific product delivery requirements from customers, and lack of visibility to carrier capacity, assignments and real-time shipment status. At one time, the company looked into implementing their own infrastructure to track shipments and ensure timely deliveries, but realized that the process would need to be highly customized and very difficult to maintain internally. It was apparent at the time that USG was in need of a technical solution to efficiently track and trace orders from their facilities as well as gather and develop metrics

Profile
Established in 1902 $3.2 billion sales in 2009

to evaluate levels of success as it pertained to on-time deliveries. USG decided it was in need of a logistics partner who would work diligently to formulate solutions geared toward the companys goals of heightened customer service and available-as-needed capacity.

NYSE
Listed since 1931

FORTUNE
#600 a leader since 1902 Focused on Building Products and specialty distribution Leading brands, product innovation excellent customer base strong manufacturing and distribution network expanding into global markets NORTH AMERICAN GYPSUM Leading Wallboard, Substrate and Surface Products

USG INDUSTRY LEADING BRANDS

Interior Panels and Substrates
SHEETROCK Brand Wallboard DUROCK Cement Board

Performance Surfaces
SHEETROCK Brand Compounds DIAMOND Veneer Finish Plasters

Ceilings Systems
Mars ClimaPlus Ceiling Tile DONN Brand Ceiling Grid Libretto Gridless Metal System

SECUROCK Glass-Mat Sheathing

BEADEX Paper-Faced Metal Trims

solution
In 2001, USG began a rigorous market-based RFP process to find a strategic logistics services partner. After interviewing several providers, the company selected Transplace for its ability to provide a comprehensive view of USGs transportation network in addition to the 3PL Optimal Carrier s Assignment (OCA) optimization capabilities. Transplace would be a key resource in assisting USG reach its goal of improving overall customer service. Transplace began its customized solution for USG by developing user interfaces that would help eliminate the current manualintensive transportation processes. This automation provided on-time delivery performance statistics to USG for the first time. Additionally, Transplace deployed its Freight Allocation Module (FAM) functionality, alleviating the need for USG associates to make phone calls to secure backup carrier capacity during peak shipping periods. The 3PL award-winning Transportation s Management System (TMS) was utilized to manage all freight movements from USGs production facilities, encompassing both truckload dry van and flatbed shipments. Additionally, Transplace developed outbound shipment status dashboards to help USG gain improved insight and visibility. Transplace utilized their advanced technology platform to power a load control center where all USG shipments were monitored and managed. Any less-than-truckload shipments would be sent directly to the Transplace account management team for consolidation and tendering instead of the USG order center. In the past, this process would go through two additional work processes prior to reaching USG. Transplaces complete management of order consolidation streamlined this process. Transplaces OCA optimization engines were implemented to dramatically improve the allocation of USGs freight based on contractual volume commitments with their motor carriers. By using this advanced assignment methodology, USG could match carrier capabilities with their own needs in a way that helped the company achieve the lowest possible delivered cost across their entire transportation network. Transplace also leveraged their partnership with sourcing technology leader CombineNet to assist USG with annual freight bid processes. This enabled Transplaces engineering services team to provide extensive what if scenarios the output of which directly enhanced OCA performance during tactical execution of the developed routing guides. USG was also an early adopter of Transplaces Business Intelligence (BI), which allows customers to access and develop custom reports on-demand to generate detailed insight and into their transportation operations. Transplaces BI provided USG with a number of key features: on-demand reporting, scheduled reporting, industry-specific (vertical) reports, ad-hoc reports, and score cards and dashboards. Furthermore, BI data was used to overcome IT constraints with USGs internal applications, enabling detailed freight reporting and allocation of freight costs to individual product lines.

Were now able to manage our extensive network of shipments with 100 percent carrier automation, while decreasing overall costs.
Craig Boroughf, Director, Indirect Sourcing and Transportation

WORLDWIDE CEILINGS Innovative Products, Growing Internationally

USG INTERIORS:
A leading manufacturer of ceiling grid and acoustical ceiling tile Full product line, focused on innovative specialty solutions

USG INTERNATIONAL:
Manufactures ceiling grid and joint compound in Europe and Asia Exports United States Gypsum and USG Interiors products to Latin America Worldwide JVs and partnerships

Results
Transplaces people, processes and technology resulted in making everyday transportation practices and procedures more efficient, cost effective and transparent to USG their carriers and customers. Ultimately, Transplace laid the foundation for USG to possess the ability to optimize future transportation costs and heighten customer service. Data provided by Transplace allowed USG to see what was working well and what could be focused on as areas for improvement. Streamlined and automated processes allowed USG to focus more on the truly strategic drivers of their complex supply chain. The combination of these successes has lead to significant bottom line cost savings for the manufacturer. Annual transportation savings range from 7% to 10%. In regards to customer service, USG now takes a proactive approach in communicating carrier service issues and delivery changes rather than discovering issues from a customers frustrated phone call. On-time delivery performance increased by double-digit percentage points upon full deployment of the Transplace technology platform. While many flatbed-centric shippers are struggling to obtain adequate carrier capacity, USG facilities have been able to maintain a loyal and growing carrier base. Through streamlined carrier communications, disciplined operating practices and carrier-minded operating procedures, carriers have recognized the additional efficiencies of working with the new USG transportation management model. As a result of Transplaces solutions, were now able to manage our extensive US network of shipments of over 30,000 lane combinations across 85 motor carriers with 100 percent carrier automation, while decreasing overall costs said Craig Boroughf, , Director, Indirect Sourcing and Transportation. By driving carrier efficiencies, we were able to create more strategic relationships with our carriers. As of result of utilizing BI and Transplace consolidating terabytes of data into actionable information and meaningful metrics via dashboards, USG can now manage analytics efficiently on their own. These numbers are easily accessible and allow the manufacturer to problem solve in real time. The visibility provided by Transplaces BI data enables USG to address transportation issues as they arise and prevent these problems from leading into future issues. The success of the relationship between USG and Transplace has led to additional opportunities for future collaboration. Projects on the horizon include an inbound shipment visibility program and a vendor freight management portal. Both USG and Transplace place a strong focus on growth and continuous improvement practices across this mutually beneficial commercial relationship. Having Transplace as a lead logistics provider gives USG the additional expertise and scalable resources necessary to become an even greater leader within their industry.

Dallas, Texas www.transplace.com

888.445.9425 info@transplace.com Transplace Case Study