Major Plumbing and Building Supplier

Challenge

Prior to 2008, this major plumbing and building supplier’s supply chain was fragmented and complicated with 450+ carriers nationally. With no KPI and DIFOT reporting it was impossible to know how well the existing solution was working. A high volume of damages were occurring and a large back office was required to support the transport function of the business – the signs were there that unnecessary costs were being incurred. On a day-today level the set up was so confusing branches were unsure of which suppliers to use for each consignment resulting in significant inefficiencies.

Solution

In this situation less was certainly more. We implemented a core supplier and state based specialist to simplify and streamline. With weekly and monthly reporting the operations became transparent and further opportunities for efficiencies were identified. The agreed service levels, 3PL services, consolidated invoicing and 1800 number for retail store freight queries and quotes were just some of the services implemented.

Results

The results were immediate. A reduction in transport costs of 12% was and continues to be achieved. Furthermore, a reduction in both transit times and invoicing processing time has been realised. A high level of delivery in full on time (DIFOT) has been achieved.