Kubota Saves Freight Spend by Streamlining Freight Processes with Redwood Logistics

Kubota Tractor Corporation revealed that it has saved 14% in annual freight spend by streamlining their inbound and outbound freight processes within their parcel and LTL divisions by utilizing innovative solutions from Redwood Logistics. Kubota, one of the largest manufacturers of tractors, construction equipment, and heavy machinery in the world, sought out Redwood to assist with cost savings opportunities, and optimized processes on their combined annual parcel, and LTL spend.

Kubota partnered with Redwood Logistics, a leading tech-focused logistics solutions provider, to modernize its LTL supply chain process and identify cost savings opportunities with their inbound and outbound freight. Following an in-depth analysis, Redwood implemented its vendor portal for Kubota, coordinating improved compliance between Kubota’s purchasing departments and vendors, ultimately gaining more control and visibility of inbound operations. As a result of Redwood’s vendor portal integration's success, Kubota tapped Redwood to serve as a consultant on spend management and operational processes, with their respective advisory partners for its parcel division.

“Redwood has helped us establish a much better line of sight on our inbound and outbound freight
costs,” said Anna Fisk, Manager, Distribution and Logistics, Kubota Tractor Corporation. “For example, Redwood’s portal allowed our vendors to select carriers according to their history and specialty, enabling not only savings compliance, but more visibility in reporting to all levels of the organization.”

Kubota’s inbound freight is a crucial component of their supply chain and has considerable impact on the company’s ability to plan and manage inventory. Redwood’s vendor portal enabled numerous capabilities for Kubota, previously not available:

-Track and trace for inbound freight with support from Redwood account management team
-Carrier compliance reports for respective shipping lanes
-Robust data analytics reporting on LTL shipping performance
-Quantifiable non-compliance transactions resulting in cost savings

“We executed a comprehensive spend management strategy, analyzing Kubota’s existing inbound rates and outbound processes, finding opportunities to reduce costs and inefficiencies,” said Al Toliver, Chief Logistics Officer, Redwood Logistics. “Like Kubota, many clients have hidden freight costs buried within vendor invoices. Our economic analysis digs out these costs and discovers opportunities to save money by changing terms and taking advantage of lower freight costs.”