Case Studies > Lauren Concrete's $1.7m Shipping Cost Savings through IoT

Lauren Concrete's $1.7m Shipping Cost Savings through IoT

Technology Category
  • Cybersecurity & Privacy - Identity & Authentication Management
  • Sensors - GPS
Applicable Industries
  • Life Sciences
  • Transportation
Applicable Functions
  • Logistics & Transportation
Use Cases
  • Last Mile Delivery
About The Customer
Lauren Concrete is a company with a wide service area across Central Texas. It operates 26 plants, each with different material costs associated with them for the same item. The company services various job delivery locations, and the challenge was to identify the most cost-effective plant for each job based on material and delivery costs. The company needed a solution that would help them process and analyze geographic data to make informed decisions about which plant to use for each job delivery location.
The Challenge
Lauren Concrete, a company with an extensive service area across Central Texas, was facing a challenge with its 26 plants. Each plant had different material costs associated with them for the same item. This meant that if two plants were equidistant from a specific job delivery location, one plant might be more cost-effective to service that job because the material costs were lower. The challenge was to identify which plant would provide the lowest possible material and delivery cost for each job delivery location.
The Solution
Lauren Concrete turned to eSpatial, a geographic data processing tool, to solve their challenge. They processed geographic data from each ticket they cut in the past year. For hundreds of thousands of records, they calculated the lowest possible material and delivery cost and identified which plant would provide that cost. They then uploaded all those records to eSpatial and used the style function to color-code points based on their low-cost delivery plant location. They drew polygons around those colored areas to mark what plants and low-cost service areas would be. This allowed them to identify plants with limited service areas which helped them identify new material suppliers with lower material costs. This, in turn, allowed Lauren Concrete to expand service areas.
Operational Impact
  • The use of eSpatial allowed Lauren Concrete to turn complex data into easily digestible maps for leaders in their organization. By sharing color-coded maps with the leadership team and showing the optimal coverage areas by plant, it helped convey a complicated idea to a much wider audience. This not only helped them identify potential shipping cost savings but also changed how they think about the plant's territory and which plant will be the most cost-effective to ship to a particular geographic point. The insight gained from this process helped them identify all the high delivery and material costs, leading to significant operational improvements.
Quantitative Benefit
  • Identified potential shipping cost savings of $1,700,000.
  • Expanded service areas by identifying plants with limited service areas.
  • Identified new material suppliers with lower material costs.

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