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Logistics Management

Slash freigh costs, improve service levels and reduce internal costsImprove dispatch productivity by 50%

A World Class Solution

A World Class Solution

The last two decades has seen remarkable changes in Business Management and especially in the logistics industry. We have seen Total Quality Management (TQM) or the progressive elimination of unwanted deviations in products and processes. Just in Time (JIT) saw amazing algorithms to optimise inventory levels whilst still aiming at high Delivered In-Full, On-Time (DIFOT) performance.

But projections of the optimal inventory required are only as good as the reliability of delivery from suppliers. And that pressure has, for all suppliers of goods, bought a new focus to the last link in the supply chain... Delivery to Promise.

Ever more powerful Enterprise Resource Planning (ERP) tools are now in wide use to achieve JIT, TQM and other internal processes to get the right quality and quantity of goods on time only as far as the dispatch dock. But ultimate Customer Satisfaction is dependent on external processes. Moveitnet helps you retain control beyond the dispatch dock.

Better Delivery to Promise yields higher profits

Better Delivery to Promise yields higher profits

“To learn how to keep customers, track the ones you lose.. A 5% increase in customer loyalty can produce an increase of 25% to 85% in profits”.

Reichheld & Sasser in ”Mastering Logistics Change”

Their finding focused on the fact that a high proportion of customers who took their business elsewhere were simply not satisfied with the service levels.

Buchanan and Gilles in “Value managed relationship” have the same message: “Retaining an existing client is five times more profitable than gaining a new one.. the increased profitability associated with higher customer service levels occurs because of amortising the cost of customer acquisition, declining account maintenance costs, reduced price sensitivity, word of mouth promotion to others, their purchase of ancillary products and a rising barrier to competition”

The chart (left) graphically shows the importance of satisfying customers to retain their loyalty and advocacy in the market place and also avoid their displeasure and the damage they can do to the reputation of their supplier.

Companies have now realised the significant impact to their bottom line that flows from swifter and more reliable deliveries and better information and support to their customers during the delivery process. Since delivery beyond the dispatch dock is beyond the scope of their ERP system they need Moveitnet’s new enabling technology to extend the power of their own existing systems beyond their enterprise.

Balancing Delivery Cost Vs. Delivery Performance

Balancing Delivery Cost Vs. Delivery Performance

Logistics Managers know that the way to build loyal customers who give them repeat business is to deliver goods on time and in full. But this critical strategic goal must always be balanced against the cost of the necessary delivery services.

It’s easy to improve delivery times and reliability simply by using more expensive forms of transport. Hiring more people can also enable higher customer support. But these all come at a cost.

The chart (left) shows how challenging it is to offer the highest delivery to promise and customer service levels whilst incurring the lowest possible direct and indirect costs.

The Aberdeen Group Delivery Management Reports

The Aberdeen Group Delivery Management Reports

The respected Aberdeen Group Research organisation from the USA and UK (www.aberdeen.com) conducted research among 380 major companies in 2008. They found that during that year most companies in the study had experienced steady increases in their delivery costs but that the best companies that had embarked upon a program to resolve the price quality dilemma outlined above (Best in Class shippers) had:

  • Centralised control of delivery management and tendering

  • Achieved Direct Freight cost reductions averaging 8.8%

  • Achieved Significant improvements in delivery to promise

These results were achieved by using closed loop information systems similar to Moveitnet.

In February 2011 Aberdeen conducted a further survey involving 174 transportation and procurement professionals. The data reveals that almost 50% of respondents are focused on improving their ability to analyse and automate their true total freight costs.

They found that Best-in-Class shippers have leveraged transportation cost management solutions together with freight process improvements to keep costs under control and maintain high levels of carrier and freight performance.

“We have reduced our freight administration staff by 50% plus the intangible savings have been immense”

John Fraser - Logistics and Operations Manager, Kyocera Mita Australia.

Moveitnet is designed to help you match or exceed the improved delivery related performances measured by these two Aberdeen reports.

Being a Cloud Computing Solution you will have information and control of all freight transactions and processes anywhere from one location. You can use the services of Freight Brokers and Consultants by supplying real time and historic information and data online.

You will be able to automate and improve internal delivery processes and customer service levels whilst dramatically reducing the related internal costs.

You will also be able to slash the direct cost of freight without adversely effecting delivery to promise. And over time you will be able to improve your delivery to promise by measuring and comparing carrier performances.

Amazingly you will be able to do all this faster and more cost effectively than by conventional methods.

That which is measured will be improved

That which is measured will be improved

This famous dictum is no where more true than in achieving the price vs. quality equation in the delivery process, however measuring what needs to be measured isn’t easy. Moveitnet is the ultimate tool to help you optimise that complex equation.

“Before Moveitnet doing meaningful freight analysis was like pulling teeth. Getting feedback from the Carriers can take weeks and direct comparisons are more difficult than comparing mobile phone plans”

Peter Puts - Distribution Manager, Davey Water Products

Now Moveitnet:

  • Empowers you to analyse and graphically represent any aspect of carrier transactions, costs and performance.

  • Controls costs and delivery to promise effectiveness of existing contracts

  • Simplifies selection of optimal tenders for delivery services

Successful Delivery Data Analysis

The Key to Successful Delivery Data Anaylsis

The Key to Successful Delivery Data Anaylsis

Data should be collected automatically in real time at the beginning of the dispatch process and continue throughout the delivery process. Because Moveitnet is used to automate the dispatch process and to prepare all labels and documents it also automatically compiles:


  • Freight profiles by Carrier and/or by destination
  • Costs per consignment and/or Carrier by any measure you choose to use
  • Deliveries that were made to promise by Carrier or Customer

All of this data is available to Dispatch and Customer Service to manage the process as it occurs. Equally importantly, historic data is accumulated and powerful tools are available to allow Logistics Managers to analyse value for money by division, dispatch point, Carrier, freight type or whatever is important in their business.

“With Moveitnet’s powerful analytical tools we get instant information in our own format that allows us to properly work at optimising overall cost and delivery performance”

Peter Puts - Distribution Manager, Davey Water Products

 Reporting Tools - My Reports

Reporting Tools - My Reports

Most standard versions of Moveitnet come with a powerful tool known as My Reports. This easy to use tool enables Managers and their staff to analyse and measure performance over any area and any aspect of the delivery process that they choose.

“I’ve created specific reports to drill down and look at costs. Having these at my finger tips allows me to see how to do things better”

John Fraser - Logistics and Operations Manager, Kyocera Mita Australia

Kyocera then implement changes through an external distribution network. Here is a more usual view of My reports from a company with 11 DC’s around Australia.

“Everyday Moveitnet sends each of our DC Managers around the country a new data file for the day before. It provides 13 months of comprehensive freight transaction data at their finger tips which helps to take out the guess work and enables our Managers to make informed decisions and forecasts”

Roy Plummer - Distribution Manager, Clipsal

Sometimes managers spend much of their time preparing reports for senior management.

“Reports to the regional office in Singapore were time consuming to produce. But with Moveitnet I get a more detailed answer really fast”

Darren Reemeyer - National Operations Manager, JohnsonDiversey

 Analytics

Analytics

But for deeper analysis Moveitnet can provide Analytics. It allows Managers to select the measures of any one of scores of criteria and then produces graphic reports which make it easy to see where good results are being obtained and also the opportunities for improvements.

“Since I started using the more powerful Moveitnet features I have been able to work smarter and get better results faster, with far less stress”

Darren Reemeyer - National Operations Manager, JohnsonDiversey

 

 

Calling Delivery Quotations from
Carriers

Calling Delivery Quotations from Carriers

Because Carriers submit quotations with different service levels and different ways of calculating the cost per consignment, calling meaningful quotations can be a nightmare.

“Prior to installing Moveitnet, calling a National Freight tender was a bit of a shot in the dark. We didn’t have much hard evidence to back up our requests and the process involved a fair degree ‘of guestimation’”

John Hore - General Manager of Logistics, Clipsal

Now Clipsal are able to give Carriers an accurate profile for each segment of their freight business “which has delivered significant freight cost saving” concluded Mr Hore.

Moveitnet will help Logistics Managers Across the Delivery Process

Moveitnet will help Logistics Managers Across the Delivery Process

Elsewhere in these pages there are details on how Moveitnet can improve processes in various departments. John Fraser of Kyocera Mita Australia believes Moveitnet underpinned their sucessful improvements throughout the freight logistics operation.

“Moveitnet works very well indeed on the loading dock...but if you have someone who understands it and puts in the effort, it really accelerates the benefits in Customer Service, Accounts and Logistics Management. The key to maximise its enormous benefits is to drive it from a senior level”

John Fraser - Logistics and Operations Manager, Kyocera Mita Australia

We couldn’t have said it better ourselves.