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Oracle Customer Success—Mutual Materials
Mutual Materials Saves US$1 Million in Interbranch Freight Costs While Increasing Tons per Delivery by 11.61%
ShareOracle Transportation Management has enabled us to fully leverage our in-house fleet as a competitive advantage. We’ve increased fleet utilization tons per delivery by 11.61% and analyzed operations to cut interbranch freight by 75%, saving US$1 million, annually.
— Guy DeFlorio, Chief Information Officer, Mutual Materials
For over a century, Mutual Materials has been the leading manufacturer and distributor of masonry and hardscape products in the Pacific Northwest. It operates 12 manufacturing facilities in Oregon, Washington, and British Columbia. These include brick plants, block plants, a paver plant, an architectural slab plant, and a bagged-mortar and grout plant.
In addition to its manufacturing facilities, Mutual Materials has 16 branches in Washington and Oregon for direct distribution to contractors and masons. It also maintains an extensive distribution network, including independent lumber yards, major home-improvement centers, masonry suppliers, and retail outlets. The company operates a private fleet that includes 42 truck flatbeds, 44 trailers, one tractor, and 44 Moffett forklifts capable of being mounted on a truck—providing a unique competitive advantage.
In addition to its manufacturing facilities, Mutual Materials has 16 branches in Washington and Oregon for direct distribution to contractors and masons. It also maintains an extensive distribution network, including independent lumber yards, major home-improvement centers, masonry suppliers, and retail outlets. The company operates a private fleet that includes 42 truck flatbeds, 44 trailers, one tractor, and 44 Moffett forklifts capable of being mounted on a truck—providing a unique competitive advantage.
Business Challenge
- Reduce costs of product transport and fleet management, which were becoming unsustainable
- Enable the company to capitalize on its private fleet as a competitive advantage that other masonry and hardscape product manufacturers cannot provide
- Standardize and automate business processes supporting the fleet, which were largely manual and ad hoc
- Reduce reliance on knowledge of individual dispatchers and local personnel to ensure consistent processes and business continuity
- Scale transportation capacity to accommodate spikes during busy construction seasons
Results
- Implemented Oracle Transportation Management to manage fleet resources and optimize distribution across the company and third-party specialized networks
- Increased fleet utilization by increasing tons per delivery by 11.61% through improved resource assignment and visibility into construction-job and retailer locations
- Reduced fleet expenses as a percentage of sales from 18.27% to 14.70% while delivering 6.0% more tons of product and 7.4% more pallets of masonry and hardscape products
- Cut interbranch freight by 75%, saving US$1 million annually
- Strengthen relationships with customers and distribution partners by communicating more accurate delivery times
- Boosted operational efficiency and staff productivity, enabling the company to reduce the number of dispatchers from eight to five and to support a higher sales volume without a negative impact on performance
- Optimized fleet resource assignment, visibility, and utilization
- Ensured compliance with regulations issued by the United States and Canadian departments of transportation regarding equipment assignments and weight restrictions
- Elevated customer service through streamlined processing of customer requirements and more efficient dispatching of fleet resources
- Saved an average of US$50 per common-carrier load, using Oracle Transportation Management’s spot-bid functionality
- Improved insight with expanded freight-expense details and analysis, including metrics for lane reports, internal less-than-load reports, and tons-per-load optimizations
Why They Chose Oracle
Mutual Materials considered several products and evaluated the best solutions for its transportation and shipping-management needs.
We selected Oracle Transportation Management because it answered to all of our needs in one simple solution. We run a very lean and efficient operation, and Oracle Transportation Management enables us to keep our business on track and improve efficiency across our transportation and shipping fleet. It also offers user-friendly visualization and the ability to analyze our operations, such as internal product transfers, like never before.
— Guy DeFlorio, Chief Information Officer, Mutual Materials
Published: Jun 10, 2014