Case Study – A. O. Smith Widens Its Reach For Enhanced Global Distribution
Key Takeaways
⇨ Increased Efficiency: A. O. Smith significantly increased its shipment volume and decreased shipping process duration by implementing ShipERP.
⇨ Labor and Cost Reduction: The company reduced labor costs by 25% at high-volume shipping locations and consolidated shipping operations to reduce overhead.
⇨ Enhanced Visibility: ShipERP provided A. O. Smith with improved visibility and transparency in its logistics process, enhancing freight cost management and shipment tracking.
Headquartered in Milwaukee, Wisconsin, A. O. Smith is a leading manufacturer of residential and commercial water heaters and boilers in North America. Since its start in 1874, the company focuses on applying innovative technology and energy-efficient solutions to products marketed worldwide. With its business comprising of e-commerce and wholesale, A. O. Smith manages sales and distribution in more than
60 countries. Serving customers all around the world requires a high-level of visibility of the company’s supply
chain operations to ensure optimal efficiency, so A. O. Smith looked to streamline its supply chain processes by implementing an automated shipping solution that would consolidate its resources and increase transparency for global distribution.
A. O. Smith found that it needed to gain visibility of its logistics process to keep innovating and providing customers with long-term business value. That’s when the company used ShipERP to provide it with an out-of-the box shipping solution that automates freight audits and track shipments, all on one screen. With ShipERP solutions, A. O. Smith gained the capability to track shipments within SAP at the delivery and handling level. The company can now perform rule-based carrier determination within SAP and have transparency on freight costs with automated freight audit. A. O. Smith also integrated ShipERP into its custom-built support portal that better serves its customers.
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