HARMONIC REDUCES THEIR B2B FREIGHTSPEND BY 25%

Industry: B2B Manufacturing
Harmonic, Inc. is a high-tech manufacturer of video routing, server, and storage products for companies that produce, process, and distribute video content for television and the Internet. With annual revenues of $0.5B and over 1,000 employees, the company is based in California and sells its technology throughout the world.

download the casestudy

THE PROBLEM

Harmonic, Inc. was incurring an 18% increase in transportation spend per year and didn’t exactly know why. “I know that some of the increase is due to volume and increasing customer expectations around shipping, but I couldn’t break down the freight spend into units that I can manage”, said Harmonic’s CFO. “At $10M per year in freight spend plus duty, we needed to get control. I asked our Controller to assist the Logistics Manager to get metrics in place to measure our spend.”

“I couldn’t break down the freight spend into units that I can manage.”

-Harmonic, CFO

The Solution

Within days, The Fulfillment Intelligence Cloud (FIC) normalized all of the company’s shipping data, analyzed the company’s freight spend, and identified these issues:

  1. Overuse of one very high cost service, Unitrans, without compelling customer benefits
  2. Inadequate discounts for the shipping volume and services provided
  3. The Logistics Manager employed The Fulfillment Intelligence Cloud analysis to recommend the following improvements to their distribution process:
  4. Building a continuous process to analyze & identify opportunities to improve and control freight spend and customer service
  5. Restructuring transportation contracts to optimize carrier and service use
  6. Tracking compliance by both carriers and operational staff following implementation of new rates and routing guides

The Logistics Manager employed The Fulfillment Intelligence Cloud
analysis to recommend the following improvements to their
distribution process:

  1. Building a continuous process to analyze & identify opportunities to improve and control freight spend and customer service
  2. Restructuring transportation contracts to optimize carrier and service use
  3. Tracking compliance by both carriers and operational staff following implementation of new rates and routing guides

THE RESULTS

The Fulfillment Intelligence Cloud enabled Harmonic, Inc. to rapidly analyze their shipping patterns across all their carriers. The CFO was able to reduce costs by $350k in the first 9 months and another $500K of savings later on for an annualized reduction of $850K. As important, the new, ongoing process allows the FIC to provide continuous compliance management, further increasing customer satisfaction and lowering the cost to serve customers. The Logistics Manager can now easily identify improvement opportunities and the Controller now has visibility and the right metrics to measure distribution performance.

THE FULFILLMENT INTELLIGENCE CLOUD™

  • Purpose-built for direct-to-customer fulfillment
  • Advanced, actionable analytics
  • Data normalization across carriers, fulfillment data with FD-Mapper™
  • Automated RFP preparation and analysis with TurboRFP™
  • ERP, TMS integration through robust, open APIs

The Fulfillment Intelligence Cloud is the first SaaS application that enables Analytics-Driven Fulfillment. Leading companies use the Fulfillment Intelligence Cloud to fulfill with confidence and delight their customers.

“The CFO was able to reduce costs by 350K in the first 9 months.”