Engineering a Smarter Supply Chain:

By Lauren Friedlander

Aggreko is a global leader in energy solutions, providing modular power and temperature control solutions in North America and around the globe. Given their specialization in high-stakes environments and commitment to rapid response and reliable service, Aggreko requires a robust, efficient logistics network to ensure on-time deliveries of critical equipment.

The Challenge

While the Aggreko business model required them to be excellent at meeting client delivery requirements, they lacked a centralized transportation management system, making it difficult to track shipments, manage costs, and maintain service consistency.

Challenges included:

• A reactive approach to supply chain management
• A fragmented logistics process that caused delays and inefficiencies
• Higher operational costs and inconsistent service levels due to lack of centralization
• Limited visibility into shipments data, making it difficult to assess costs and identify inefficiencies
• Unreliable freight schedules and frequent carrier service failures

Aggreko also faced challenges due to the nature of their power and cooling solutions, which often require the time-sensitive shipment of flatbed or open deck equipment. Moving machinery and power generators required an optimized and automated process, something that was difficult to achieve without proper systems in place. Urgent shipments, which required responses within minutes, needed structured contingency plans. Aggreko often resorted to relying on a small group of familiar carriers, sacrificing cost savings available in the broader market.

The Solution

RedStone Logistics designed and implemented a comprehensive logistics solution tailored to specific Aggreko client service requirements. The approach focused on consistency, transparency, and efficiency, with a strong emphasis on data-driven decision-making and streamlined operations.

1. Creating Consistency

RedStone centralized the Aggreko procurement process by implementing a structured network of transportation providers, ensuring more predictable and reliable shipments. A consistent pricing structure was established, reducing variability and improving cost control. By layering in appropriate service providers, RedStone created a reliable foundation for emergency responses, ensuring Aggreko could quickly access capacity without paying premium rates.

2. Enhancing Transparency

RedStone implemented their Latitude® technology platform, enabling real-time tracking, exception management, and reporting for improved supply chain visibility.

• RedStone Latitude® is an all-in-one adaptive supply chain platform, a web-based technology tool providing powerful visibility into your supply chain. This platform integrates data from multiple sources and delivers simplified reporting, business analytics, predictive insights, and time-sensitive industry news—all customized to meet the needs of RedStone clients.

3. Increasing Efficiency

RedStone streamlined freight payment processes by consolidating hundreds of vendor payments into a single transaction. This simplified accounting operations and accelerated payment cycles, reducing DSO by up to two weeks.

RedStone also established contingency plans for emergency situations. Instead of relying on a limited number of freight suppliers or making ad hoc decisions, Aggreko now has access to a network of pre-approved service providers, ensuring a reliable and cost-controlled response for urgent shipments. This proactive approach increased Aggreko’s ability to respond quickly to critical needs.

The Outcome

As a result of these improvements, Aggreko experienced:

• Increased service reliability: More consistent and predictable shipment schedules.
• Optimized costs: Enhanced competition among carriers by significantly reducing RPM of local and long-haul shipments.
• Faster response times: Urgent shipments often completed in as little as four hours.

Improved financial performance: Reduced DSO by up to two weeks, accelerating cash flow.

A Mutually Beneficial Partnership

Beyond providing Aggreko with a more structured and efficient logistics network, RedStone also greatly benefited from this collaboration. The partnership between Aggreko and RedStone has helped facilitate improvements to the RedStone Latitude® platform, driving innovation in freight audit and payment systems. Additionally, exposure to a wider market allowed RedStone to refine its service offerings and build a stronger operational structure. The relationship continues to foster new projects that bring positive change to both organizations, reinforcing a shared commitment to continuous improvement and strategic growth.

Client Testimonial

“With every shipment, we were almost starting from scratch; we were constantly in reactive mode. We now have a tailored solution that captures data for every shipment and provides full visibility to crucial information such as length of haul, type of truck, dollar-per-mile cost, etc.” said Chad Thibodeaux, National Transportation Manager at Aggreko.

Conclusion

By partnering with RedStone Logistics, Aggreko successfully transformed its logistics operations, achieving peak consistency, transparency, and efficiency. With a robust transportation management infrastructure in place, Aggreko can now proactively manage shipments, optimize costs, and ensure that its customers receive reliably high-quality, service.

The collaboration has enabled Aggreko to focus on its core mission—delivering reliable power solutions to businesses and communities—while relying on RedStone to provide a seamless, high-performance logistics network.