Leading SA Consumer Goods Company

R300M+ ($16M+) Logistics Savings over 8 years

Overview

A leading Consumer Goods company in South Africa was looking to reduce costs and optimise supply chain performance. Traditionally, the company had outsourced the bulk of its warehousing and distribution activities to a large third-party logistics service provider but now the company was looking to take back control.

Introduction

In 2014, Transnova was appointed to conduct a supply chain review and develop an inbound and outbound logistics improvement roadmap. During this project, we re-engineered and optimised the outbound logistics component, taking costs out of the supply chain, and helping the client improve visibility of its inbound spend and processes.

Inbound enhancements such as changing from a “delivered” product model to “ex works” product model led to a 15% saving on total inbound logistics costs.

Following on from the success of this project, Transnova was appointed as Lead Logistics Partner in 2016 with the responsibility of implementing a Transport Management System (TMS) and establishing a centralised Logistics Control Tower to oversee and manage the end-to-end logistics.

Logistics Control Tower Solution

The Logistics Control Tower is supported by a dedicated team of Transnova staff who are responsible for the daily transport operations including order management, transport planning, execution and settlement, pallet management, reverse logistics and carrier management.

The Control Tower is supported by technology and standard operating processes, with the ultimate goal of driving supply chain visibility and performance whilst ensuring efficiency and cost-effectiveness.

Through our business partner relationship with this leading Consumer Goods company, we have come to appreciate the complexity of the business and its supply chain specific to the logistics operations. Working closely with the client’s logistics team, we have jointly delivered numerous continuous improvement initiatives that have had a lasting positive impact for shareholders.

Highlights

• Re-engineered and optimised inbound & outbound logistics saving over R190M.
• 15% savings on total inbound logistics costs.
• Implemented a leading-edge Transportation Management System (TMS).
• Centralised Logistics Control Tower with an experienced skilled team in place to manage it.
• Improved vehicle and loading turnaround times.
• Fixed and variable local fleet.
• Ship More Direct project led to savings in excess of R100M from secondary distribution.
• Global Trade Solution for cross border visibility and improved exports management.
• Full Order to Cash solution.
• Full integration into the client’s Customer Service Centre.
• Logistics business partner of choice for 8 years.