Ingersoll Rand Saves More Than 2 Million Dollars by Integrating Transportation Management across Business Lines
 
 

Ingersoll Rand Saves More Than 2 Million Dollars by Integrating Transportation Management across Business Lines

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Ingersoll Rand is a global, diversified industrial firm providing products, services, and solutions that enhance the quality of air and comfort in homes, buildings, and transport and that protect food and perishables, secure homes and commercial properties, and increase industrial productivity and efficiency.

Given the breadth of its product offerings and its global reach, the company has a complex network of manufacturing and distribution operations. To increase efficiency while ensuring that it continues to deliver the superior service its customers expect, Ingersoll Rand implemented Oracle Transportation Management to coordinate its outbound shipping across various lines of business and facilities.

Even while the application was implemented currently at eight sites of the company’s more than 70 locations, it already exceeded expectations for improved productivity and cost savings. With Oracle Transportation Management, users can view shipping plans across lines of business and facilities, enabling them to adjust shipments to increase efficiency, such as making multiple stops within one shipment. The application has already contributed to more than 2 million dollars in savings and increased on-time delivery rates.

 
 

 
 

Challenges

A word from Ingersoll Rand

  • “Oracle Transportation Management is a robust application that enables us to attain superior, on-time delivery service levels and predictable business performance across a variety of Ingersoll Rand’s industrial product lines, facilities, and customers.” – Michael A. Rebilas, Director, Transportation Management System, Ingersoll Rand

  • Provide superior customer service by ensuring quality, cost-effective, on-time delivery of products across multiple business lines, ranging from Trane heating and cooling systems to Schlage locks
  • Manage high shipping volumes, amounting to several thousand lines per day, from several facilities, including discrete manufacturing centers and warehouses
  • Meet tight delivery windows for industrial products, such as compressed air systems, which must arrive when an installation crew is on site to deploy it to avoid undue customer costs and project delays

Solutions

Oracle Product and Services

  • Deployed Oracle Transportation Management to replace legacy transportation management systems and provide a streamlined and integrated outbound shipping process―leveraging truckload, less-than-truck-load, and parcel modes―across four diverse business sectors
  • Rolled out the application as part of an Oracle E-Business Suite implementation at eight sites with plans to roll out to all Ingersoll Rand manufacturing and distribution locations
  • Increased the percentage of on-time deliveries―with on-time deliveries now averaging above 95%
  • Improved shipping efficiency—and thus profitability—by eliminating silos across business lines and enabling users to model and analyze shipments to determine where they can consolidate or add multiple stops to improve service or reduce costs
  • Exceeded expectations for productivity improvements and cost savings at the eight sites deployed to date, already saving more than US$2 million
  • Provided more predictable processes in outbound shipping, enabling planners to more quickly and easily manage exceptions, which now happens much less frequently 
  • Freed planners from day-to-day outbound shipping monitoring, instead enabling them to work on continuous improvement by reaching out to customers to see how they can better meet their needs
  • Benefited from integrations between Oracle E-Business Suite, as well as third-party applications, which is helping to improve efficiency and reduce administrative effort

Why Oracle

While Oracle is a strategic partner for Ingersoll Rand, the company evaluated other vendors’ solutions when launching its transportation management initiative. It ultimately selected Oracle Transportation Management for its robust functionality, flexibility, and integration with Oracle E-Business Suite, which the IT team and lines of business stakeholders felt would add value to the company’s customer base.

Advice from Ingersoll Rand OTM Implementation Team

  • Understand the concerns that each site and line of business has, and build an effective solution to address them
  • Make sure project management team members work closely with functional leads so that the final product meets everyone’s needs
  • Involve team members with strong logistics backgrounds in the implementation

Resources