Electrical Manufacturer and Distributer
The client is a major international manufacturer and distributer of electrical goods covering energy management and automation hardware and electrical systems and parts. It generates the majority of its income from wholesaling telecommunications and other electrical goods. This process involves distribution centres (DCs) in most Australian. Goods are delivered from the DCs by way of a third-party logistics (3PL) provider, paid on a cost-per-drop basis for delivery services.
National distribution system requiring control of delivery costs, customer expectations, brand awareness and delivery performance visibility.
A 3PL delivery contract up for re-negotiation which prompted the client to review their delivery requirements. They wanted to:
- ensure they were being provided the most effective system to keep delivery costs in check.
- gain more control of delivery timing with the capability of providing real time ETA data especially to their VIP customers.
- Determine if their current system paying a cost per drop and per kg was the most effective system for the current delivery requirements.
- Access the latest technology for visualisation and monitoring of delivery progress
Solution : Turboviz Integrated PlatformKnow More
To identify the best options TurboViz undertook an in-depth review of six months client data. As part of the analysis Turboviz applied state of the art optimisation processes to identify the most efficient configuration of the delivery fleet and runs.
- The analysis showed a strong business case for the Client to revamp their business model to an hourly rate per vehicle.
- The analysis identified the option for the Client to dictate more control over transport and delivery timing.
- This included control of delivery windows to give preferential delivery for VIP customers and the ability to have exclusive use of the fleet including branding of vehicles.
The outcome produced a recommendation that was incorporated into a competitive tender document.
Outcomes: Control of Deliveries, Increased Customer Satisfaction, Increased Brand Visibility, Cost control, Real Time Delivery Control Tower visibility
Using these findings the Client revamped its payment and management strategies as part of the new tender for new 3PLs. The Client achieved substantial benefit in changing to a cost per hour model. Daily optimisation was included and giving greater efficiencies and tighter control of delivery outcomes and customer experience.
This allowed the Client to contract a 3PL for an exclusive use fleet, branded with the Clients Brand and giving greater surety of delivery times for their customers. This reduced the vehicle requirement from over 60 vehicles to less than 40 vehicles. It also gave the ability to use an hourly rate rather than the more expensive cost per drop or kg .
Turboviz platform was mandated by the Client to increase their efficiency, achieve exemplary client service scores and avoid the extra delivery costs that previously were passed back to the Client.
A major advantage of the exclusive use of the 3PL fleet was the ability to track and visualise the progress of deliveries using a Control Tower display. These results were updated through the Turboviz Dashboard on a fifteen minute basis.
The Client were previously in a situation where the customer service staff and operations management had little knowledge of delivery progress during the day. They were previously at the mercy of the contracted 3PLs own operational requirements and only found out about delays through customer complaints.
With the new optimised system updated regularly through the day they achieved significant savings in delivery costs and in customer satisfaction ratings with much improved delivery timing and Control Tower visualisation.