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Managed Services Simplify Transportation for Minnesota Rubber & Plastics
Problem: Carrier Mismanagement Drains Staff Time
Since 1945, Minnesota Rubber & Plastics has built its reputation around the globe in the molding and assembly of products made from elastomers and thermoplastics. The company provides difficult-to-manufacture rubber and plastic parts and assemblies for diverse industries including medical, electronics, pharmaceutical, fluid power, agriculture, food and beverage. Providing cost-effective solutions to technically demanding applications, MN Rubber's state-of-the-art technical support staff work closely with its manufacturing, sourcing and logistics network to ensure that customer expectations are met—and exceeded.
Minnesota Rubber had relied on a combination of 3PL and carrier-direct relationships to manage the logistics of tooling components and raw materials. A pattern of mistakes and billing inconsistencies, however, caused the vendor relationships to become more of a burden than a partnership. “Managing carriers became a full-time job,” remembers Applications Manager, Carl Hutt. “The need for a fully-engaged 3PL was apparent as our staff resources were drained.” Minnesota Rubber sought a partner with similar values to itself—based on trust and accountability—and Koch Logistics was that 3PL. Solution: Proactive 3PL Approach
During the past six years Koch Logistics has managed all of the inbound transportation services for Minnesota Rubber. Koch has created seamless supply chain support, relieving Minnesota Rubber of its previous carrier-related headaches and reducing demands on its internal staff. “We've been able to pretty much save a position, as well as time and energy because Koch's work is seamless,” says Connie Brown, Supply Chain Analyst.
The dedicated Koch team works to communicate and resolve issues for Minnesota Rubber no matter the task. From deftly handling routine inbound assignments to addressing occasional issues like freight damage, Koch brings a level of flexibility and speed that is notable. “I typically hear about any damages from Koch before our receiving department has even marked it,” continues Brown. “Koch works proactively to make things right.” While Koch's focus for Minnesota Rubber is inbound transportation, when a carrier headache emerges regarding outbound freight, Minnesota Rubber turns to Koch without hesitation. Minnesota Rubber's customers typically manage the transportation of the finished goods from the manufacturing dock, but at times Minnesota Rubber is asked to help untangle their freight issues. For example, when an outbound automotive parts shipment was virtually stopped at the Canadian border last year and the Minnesota Rubber customer sought help, just one call to Koch resolved the snag. This situation could have depleted Minnesota Rubber's in-house resources but for the dedicated team at Koch Logistics, it was a routine load recovery. They swiftly dealt with customs clearance and paperwork to get the freight moving again as efficiently as possible.
Results: Costs Decrease, On-time Increases
During the six year partnership, Koch's value-added services have helped Minnesota Rubber to not only reduce costs but improve its processes such as increasing its on-time delivery rate by 20%. Koch's customized weekly billing summary now allows Minnesota Rubber an at-a-glance review of what used to require detailed scrutiny of multiple pages of carrier invoices. And Koch's data supporting its suggestion to reduce shipment frequency from low-volume suppliers proved extremely valuable at a recent Kaizen focused on reducing freight costs.
As Minnesota Rubber & Plastics enters new markets and expands its presence around the world, it's important to have a reliable logistics partner to count on. “Koch Logistics is more like an extension of our business rather than a vendor,” says Brown. “They are a partner actively engaged in our success.”
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