MTD Powers Up LeanTMS® for Functionality, Visibility and Collaboration

Client Profile

MTD Products is a leader in outdoor power equipment, including lawn mowers, chain saws, leaf blowers, log splitters, and tillers. With over 80 years’ experience, MTD is based in Valley City, Ohio, and sells products internationally. The company culture supports growth, innovation and entrepreneurship.

MTD’s operations group has facilities in the United States, Canada, Mexico, Europe, China and Australia, while shipping approximately 3,000 inbound and 2,500 outbound containers to these locations annually. Shipping volume for the first six months typically is 45,000 loads, which is about 300 million pounds of freight. Because of the global nature of its business, MTD has a huge need for information visibility from all over the world.

Business Process and Problem Definition

MTD faced many transportation challenges, including lack of visibility of shipments, many manual processes, limited supplier collaboration, lack of metrics and a very reactive process. The company also hoped to improve cost effectiveness across all facets of logistics. MTD decided that implementing a TMS was the best answer to optimize supply chain costs and resolve its transportation challenges.

Goals for the TMS implementation included:

  • Create a seamless supply chain domestically and internationally
  • Provide visibility of product and global regulations paperwork
  • Increase collaboration amongst facilities, suppliers and customers
  • Automate processes to improve productivity
  • Gain access to real-time, accurate data for analytics and better decision making

“As we continue to grow globally, our focus is to develop a seamless supply chain,” said VP Supply Chain for MTD Products. “It also means that we have thousands of employees worldwide that need to view shipping information, follow shipments all over the world, gather information and view regulation paperwork on those shipments.”

LeanTMS® SCALABILITY PROVIDES A SEAMLESS SUPPLY CHAIN FOR CUSTOMERS, SUPPLIERS AND OPERATORS

Process Improvement – SaaS Solution

MTD reviewed TMS vendors and selected LeanLogistics as the best TMS to automate processes and create a seamless, more efficient supply chain. LeanLogistics LeanTMS® gives MTD complete transportation functionality, as well as transportation visibility and collaboration.

MTD uses LeanLogistics to manage every step of the transportation process, from purchase orders for inbound logistics, to interplant communication regarding customer orders and outbound logistics.

Additional benefits of LeanLogistics LeanTMS to MTD include:

  • Better visibility of both inbound and outbound shipments for real-time monitoring of the entire freight process
  • Receiving orders automatically and tendering loads to carriers directly through the system
  • Visibility of supplier routing guides, ensuring compliance and accountability
  • Improved process automation and optimization with LeanLogistics WebSettle® to streamline the payment process

By implementing LeanLogistics LeanTMS, MTD is able to improve collaboration with all of its facilities, suppliers and customers to drive the transportation network for better efficiencies, reporting, analytics and inbound material flow. In addition, freight optimization improved dramatically. MTD measures freight cost versus cost of carrying inventory and since implementing LeanLogistics, the carrying costs have decreased. With the cost of freight rising, optimizing freight thru consolidation and reduction in shipments is increasingly important.

Value Delivered

With LeanLogistics, MTD manages transportation with true SaaS technology, providing better coordination, control and lower cost. Collaboration and visibility provides MTD facilities, suppliers and customers two of the biggest improvements since implementing LeanLogistics LeanTMS. MTD takes advantage of the industry’s largest transportation network, LeanLogistics Transportation Network, which empowers shippers, carriers, suppliers and members to reduce costs, improve services and gain complete visibility through the collaborative network.

“Our suppliers can go to the MTD portal to identify all of the shipments and releases that are due, and as they check those, it shows data from LeanTMS,” said VP Supply Chain for MTD Products. “This has helped us drive the efficiencies both internally and externally. This really puts the ‘seamless’ in ‘seamless supply chain.'” The benefits MTD Products continues to receive from LeanLogistics include:

Improved Visibility: Central data repository enables visibility for analysis of costs and performance measurement to uncover areas for improvement.

Reduced Costs: Initially MTD decreased freight cost by 12% and increased productivity by 20% with the same number of people. Receiving dock transactions have decreased 30%, meaning less receipts, putaways and material handling.

Optimized Shipments: LTL compared to truckload has gone from 33% LTL down to 25% LTL, resulting in a huge improvement to the number of deliveries being made daily in addition to improving freight costs.

Increased Collaboration: With over 500 suppliers in the US alone, collaboration ensures correct information to keep multiple production facilities running smoothly.

Download the “MTD Products Utilizes LeanTMS® for Complete Transporation Functionality, Visibility, and Collaboration” case study.