Resources Case Study

Optimizing the supply chain at LG’s state-of-the-art facility

Freight Services, Tech & Visibility

The client:

The challenge:

A business-critical facility in LG Electronics USA’s supply chain required a freight provider that could address carrier performance issues.

The outcome:

Convoy’s on-demand shipment insights informed LG’s transportation team’s abilities to make operational changes that improved scheduling, lowered wait times, and decreased incidental fees. The addition of Convoy Go also helped minimize inventory backup and removed carrier wait time. The Clarksville factory is now a top performer in LG’s network. 

Convoy solutions:

With a strong commitment to “Innovation for a Better Life,” LG Electronics USA is known for innovation in every aspect of its business—in its world-class products and in its operations, from planning and manufacturing to shipping, delivery, and beyond.

Production at LG’s million-square-foot plant in Clarksville, Tennessee—the most advanced washing machine factory on the planet—started in Q4 2018. As at any facility, LG needed reliable, fairly priced, and high quality service to move finished product. As production was ramping up in mid-2019, the company sought to scale driver coverage and improve carrier communication to address pain points in the supply chain.

We needed to change the way we serviced this critically important facility. With our advanced home appliance production technology in place, we needed a supply chain solution to match. We looked to Convoy due to their ability to provide real-time data-driven insights combined with innovative programs that drive better performance.”

Paul Heffernan, supply chain vice president at LG Electronics USA

Convoy and LG partner to increase operational efficiencies

Convoy was already working with LG to streamline logistics processes at other U.S. facilities. For Clarksville, Convoy partnered with LG to develop a flexible strategy that combined access to Convoy’s extensive carrier network and deep data-driven insights, along with the ability to scale drop shipments using Convoy Go.

A smoother, more efficient supply chain that benefits LG, its carriers and drivers

With Convoy, LG gains transparency into its shipments, as well as key performance metrics at the facility, and carrier feedback. This increased visibility allows the team to make operational changes that improve scheduling, lower wait times, and decrease incidental fees.

The addition of Convoy Go solves a major pain point in manufacturing by minimizing inventory backup and removing carrier wait time for trailer loading. Trailers now can be loaded as product is ready, then moved to the yard for drivers to hook and go. Additionally, Convoy Go allowed LG to quickly build supply volume by offering drop shipments to Convoy’s entire available carrier network, many of which are smaller operations that otherwise would not have had access.

85% of the Convoy carriers now servicing the Clarksville factory have 8 or fewer trucks

“We appreciate our carriers and are pleased to be able to offer additional freight options that keep their trucks moving while ensuring our award-winning washers reach customers on-time,” said Heffernan.

The combination of predictable freight and new operational efficiencies has paid off. The Clarksville factory now is a top performer in LG’s network, achieving significantly lower wait times and receiving consistently high carrier ratings.