TRANSPORT STEP-CHANGE

Malaysia

Sector

FMCG


Issue

A manufacturer seeking a sustainable reduction in transport costs and carbon footprint while maintaining service performance


Solution

  • Comprehensive review to reduce costs through correct vehicle selection, vehicle cube utilisation, wheels-rolling time (reduced turn-around times at source/destinaion) and tendering using bottom-up costing to achieve ‘right priced’ transport.
  • Secure gov’t approvals and Introduce high-cube vehicles on selected routes

Results

  • Stage 1: Transport cost reduction with total savings of US$7.7m (28% of transport budget)
  • Stage 2: Route costs reduced by a further 25% wherever high-cube vehicles deployed

ACTUAL vs TARGET BENEFIT DELIVERY Biz Case Saving –
USD m pa
Actual Saving Delivered –
USD m pa
Actual as Biz Case Target
Container fill 1.5 1.5 100%
Use of max size containers 0.6 0.8 148%
Competitive transport rates area 1 0.2 0.2 100%
Competitive transport rates area 2 0.7 0.6 92%
Competitive transport rates area 3 0.8 0.9 111%
Inbound & outbound integration 1 1.0 0.6 62%
Inbound & outbound integration 2 0.2 0.2 85%
Multimodal transport solution No target 2.9 No target
TOTAL 4.9 7.7