Integrify > Case Studies > Streamlining Operations and Ensuring Compliance: Cardinal Logistics Management's IoT Journey

Streamlining Operations and Ensuring Compliance: Cardinal Logistics Management's IoT Journey

Technology Category

Cybersecurity & Privacy - Security Compliance
Networks & Connectivity - 5G

Applicable Industries

Buildings
Transportation

Applicable Functions

Logistics & Transportation
Quality Assurance

Use Cases

Inventory Management
Time Sensitive Networking

Services

System Integration
Training

About The Customer

Cardinal Logistics Management, Inc., headquartered in Concord, NC, started as a common carrier in 1981 with 14 tractors. In July 1997, Cardinal Freight Carriers was purchased from its former parent company, ABF, by the Chicago-based private-equity firm GTCR Golder, Rauner. The company has grown significantly above the industry average due to its focus on dedicated delivery and logistics consulting, becoming one of the “Top 10 Logistics Providers” in North America as voted by readers of Inbound Logistics. As the company continued its rapid growth, it faced challenges in managing its operations efficiently and ensuring compliance with regulatory requirements.

The Challenge

Cardinal Logistics Management, Inc., a leading logistics provider in North America, faced significant operational challenges as it expanded. The company's traditional method of manually processing requests or using disjointed desktop databases for communication between field locations was becoming increasingly inefficient and disorganized. Each department had its own processes and preferred communication methods, which led to confusion and inefficiency. The company needed a standardized and streamlined process to manage workflow better, improve customer service, and continue its growth. Additionally, as the company prepared for its future public offering, it needed a system that would comply with the Sarbanes-Oxley requirements for publicly-held businesses. This included the need to verify all P&L input from employees at all levels of the company.

The Solution

Cardinal Logistics Management implemented Integrify’s software to automate its driver development and help desk processes. Integrify, a flexible business process management tool, allowed the company to automate requests and streamline approval processes. The software provided form creation, routing definition, and tracking tools to those responsible for processing requests, minimizing data entry and simplifying requests for approval and fulfillment. The software was web-based, allowing for easy user accessibility and management of approval processes. The solution eliminated problems typically related to labor-intensive processes such as manual paper handling and email requests, and could reduce costs per transaction by 60 to 90 percent as opposed to paper-based processes. In addition, Cardinal added Integrify’s SOX Assessments software to facilitate compliance with Sarbanes-Oxley regulations. This software allowed Cardinal to design, describe and publish corporate policy; automate the enforcement of internal controls, create a complete audit trail of control activities and automate and document risk assessments.

Operational Impact

The implementation of Integrify’s software led to significant operational improvements for Cardinal Logistics Management. The company saw a standardization of its processing and improved visibility into processing. Employees and managers could now quickly revise and update a process when it needed to be changed, and get instant compliance because all necessary changes were automatically made within the system. This capability, as well as the fact that fewer people were required to process requests, saved the company time and resources that could be better used to serve customers. In addition, better communication on exceptions, better documentation, and online access to case history requests improved intra-department communication and made operations run much smoother. The company was also able to run more driver applications through the system than ever before, improving the quality of the applicants they hire. The SOX Assessments tool gave Cardinal the ability to easily document and communicate policies and procedures, carry out management assessment, base its internal controls on a suitably recognized framework, automate enforcement of defined internal controls, and create a complete audit trail of transactions and control activities.

Quantitative Benefit

Cardinal’s revenues grew by 50 percent in 2004, and the company added 40 field offices to its operation.
The company was able to process a higher volume of driver applications (up from 2,610 in 2003 to 3,370 in 2004) and service its increased number of users in the field offices (up from 200 in 2003 to 400 in 2004) without having to add heads at its corporate office.
Because Integrify managed a 30 percent increase in process volume without requiring an increase in staff, Cardinal saw a savings of $30,000 in overhead.