Expertise

Specialists in the development and deployment of supply chain solutions for emerging markets.

Transport Development

OverviewCase Study

The size-of-prize in transport development is often massive.  It also has the added benefit of being highly tangible….greater DIFOT (Delivered In Full On Time) at a lower cost per case.

The reason that there is so much upside in transport is that service buyers usually buy on cost-per-case. They are rarely equipped to take on a holistic approach and understand the impact of:

  • Product configuration
  • Throughput volatility
  • Vehicle sourcing and configuration
  • Order processing and planning
  • Origin and destination interfaces
  • Routing and scheduling

Our contention is, this is a missed opportunity dropping millions of dollars from the bottom line. (Every time….in our 16+ years of experience).
 
Every transport project that LCA has undertaken during the last 5 years has resulted in an annual cost reduction of between 15% and 37%.

Client

A leading FMCG manufacturer in Malaysia.

Issue

The client believed that their transport spend was higher than it should be – especially as they are a large scale buyer.

Solution

LCA spent two months comprehending transport operations, measuring performance and then designing a new approach.
We then spent a full year with the client, working with their people to change practices and to restructure the relationship with a raft of transport providers.

The overall thrust was to permit the client and their transport providers to:

  • Operate the largest possible vehicles
  • Achieve a high rate of fill (including backhaul)
  • Keep the wheels rolling continuously (24/7)

Result

These changes led to a 30% reduction in transport spend in the calendar year following the exercise.

Further savings (25% on applicable routes) were achieved the following year by the introduction of high-cube trailers.

  • Financial benefits were sustainable
  • Service levels were enhanced
  • Transporter margins were protected
  • Transport regulations were adhered to
  • Corporate health and safety regulations were met.

The client received a national award for environmental benefits (primary for reduced diesel usage) and a transporter won a national award for innovation due to the introduction of high-cube trailers.