Lead Time to Tender Analysis
In Supply Chain, freight accounts for a large portion of the overall cost. Whether that freight is expedited, shipped rail, or picked up by a customer affects the cost of the freight. Another factor of the freight cost is lead time to tender. Lead time to tender is the amount of time between the time the truck is requested to the requested date of the pickup. When this time is less than 24 hours, the cost of the freight goes up. Ideally there would be 72 hours between the request of the shipment date and requested pickup date but this is not always possible. With changing customer demand, sometimes it is not possible to give the carriers 72 hour notice. Over the past 4 months, freight costs have been on the rise. Graphic Packaging’s logistic teams have been looking for ways to decrease unnecessary costs. One place where this is possible is understanding the additional cost to request shipments with a lead time to tender less than 24 hours. That way plants and mills can make an informed decision when requesting to expedite shipments. The data used in this project was based on Graphic Packing info but it has been changed so no proprietary information is shared.
