MAJOR PLUMBING & BATHROOM SUPPLIES CO.
We worked with one of Australias leading suppliers of bathroom and plumbing supplies. Damages were high, branches confidence in the DC was low and there was little to no visibility within the supply chain of shipments.
Prior to Transport Works, their supply chain was fragmented and complicated with 450+ carriers nationally. Poor delivery performance and a lack of business reporting made it impossible to know how well the existing solution was working.
A high volume of damages was occurring and branches were unhappy at the long lead times of the orders from the DC. The administration required to support the transport function of the business was costing them thousands – the signs were there that unnecessary costs were being incurred.
The internal supply chain structure was confusing branches were unsure of which supplier to use for distributing their goods resulting in significant inefficiencies.
The solution required an overhaul and a simplified approach both internally and for its branches.
We implemented a core supplier program with state-based specialist carriers to simplify and streamline whom to use and where. Weekly and monthly reporting were implemented to provide transparency to the supply chain and allow for informed changes. Opportunities for improvements were identified and resulted in the correct carrier being used, reduced costs, quicker transit times and less damage occurring.
Agreed service levels were set with carriers to hold them accountable, a consolidated invoicing program to head office and an 1800 number for branches to obtain freight queries and quotes were some of the other initiatives that TW implemented.
The results were immediate.
The monthly KPI reporting provided visibility to management and allowed carrier changes to be made. A reduction in transport costs of 12+% was achieved from DC to branches along with a reduction in lost and damaged goods for deliveries to branches using the monthly reporting. Carriers were being held accountable and the noise from branches was minimal.
Furthermore, the 1800 number we implemented had branches calling for freight quotes, delivery enquiries, customer support, etc. A reduction in transit time for branch deliveries and an increase in delivery performance to 98% DIFOT resulted in the change to Transport Works.