LEADING GLOBAL FOOD MANUFACTURE

World-leading food manufacture with a large complex supply chain required a reduction in commercials whilst maintaining a high level of delivery performance. 

Cross.png
9-11%
REDUCTION IN
TRANSPORT COSTS
Cross.png
99%
DIFOT
Cross.png
100%
CUSTOMER
SATISFACTION
The Challenge

The printing industry is one of the most time sensitive industries in the marketplace – if you don’t have the product in the right place at the right time the order goes to the one that does. This leading paper merchant was losing clients and orders due to the incumbent interstate bulk carrier failing to meet the service level expectation that was required to ensure they were not losing sales.

Because of the large complexity of over 2500 SKU's, having the right product in the right place to meet customer demand was simply not possible.  This resulted in the business sending large volume sales orders interstate to meet customer orders.

 

The incumbent was not communicating delays, damaged freight and in some cases not even turning up to collect the freight. This prevented them from proactively communicating with its customers to meet the strict deadlines on print orders and this was resulting in lost sales and inturn customers.

The Solution

We identified one of the main challenges as being the delivery time and expectations of its customers.  Once this was understood and the flow-on effect to their business it was having, we were able to press forward and provide our solution.

Communicating the shipment status each morning to the receiving DC's ensured proactive communication to their end clients.  Our customer was able to communicate if a time slot was going to be missed.  It also allowed enough forward planning to inform the DC's to reschedule time slots if needed.

We also implemented a TMS to allow for electronic communication between the warehouse, transport providers and customers.   Milestone tracking and status updates, realtime POD's and a central data repository are all benefits of the TMS we implemented.

 
Carriers were chosen to deliver to specific regions depending on their strengths and rate cards were built around carrier profile.  Carriers were consolidated to reduce the number of suppliers

fmcg-fast-moving-consumer-goods-concept-
download.jpg
The Results

The results on commercials were immediate while the delivery performance took some time to get it where it needed to be.

A reduction in freight spend, implementing our Transport Management System (TMS), carrier management and COR compliance and continuous improvement programs have made noticeable and positive impacts to our customer and their customers.  A nationwide service standard of 99% of deliveries completed in full on time (DIFOT) was achieved.

The client now has confidence in our ability to service more of the delivery requirements across Australia and New Zealand.   We are introducing carriers across the entire supply chain to the TMS installed and the data for all carriers is being used to provide, weekly, monthly and quarterly business intelligence reporting.