Marex was approached by a building materials distributor to vet, identify and procure a TMS that would fit well with their operation. This client has a domestic network of warehouses and distribution centers, and they operate a fleet of trucks to transport their products to customers across different regions. They recognized that their logistics operations could be more efficient. They were experiencing increased costs and longer delivery times.
Before implementing the TMS, the company’s operations were highly manual, relying upon Microsoft Excel spreadsheets for load planning and dispatching. The dispatchers would receive an order from a customer via text, phone, or email. They would manually create a shipment order and allocate a truck for transporting the goods. The dispatchers would also have to manually communicate with carriers, by phone or text, to schedule pickups and deliveries, leading to delays, errors, and inefficiencies. The company lacked real-time visibility into its supply chain process, making it challenging to manage its logistics operations and optimize its dispatch process.
The implementation of the TMS system was a significant change for the company. Marex co-implemented the system and helped them to configure and customize it to their specific operation. The TMS system enabled the company to centralize its logistics operations, providing real-time visibility into its supply chain process.
The first step in the implementation process was to integrate the TMS system with the company’s existing Enterprise Resource Planning (ERP) system. This allowed our client to pull all the order data, inventory data, and customer data into one system, providing a single source of truth for their entire supply chain process.
Next, the TMS system was configured to automate the shipment creation process. The dispatchers no longer had to manually create shipment orders as the TMS system would automatically generate shipping orders for each new order received. The system would also allocate the most optimal truck for each shipment, using artificial intelligence to take into account truck capacity, location, and availability, thereby optimizing the dispatch process.
The TMS system also enabled our client to manage their carriers more efficiently. The system allowed carriers to access the TMS portal and driver mobile apps, where they could view and accept shipment orders, schedule pickups, and deliveries, and provide real-time updates on shipment status. The system could also track the carriers’ performance, allowing the company to make data-driven decisions on which carriers to work with in the future.
Another significant advantage of the TMS system was the ability to optimize transportation routes. The system used sophisticated algorithms to calculate the most efficient routes for each truck, taking into account factors such as traffic conditions, weather conditions, and road closures. This led to a reduction in transportation costs and fuel consumption.
The TMS system also provided real-time visibility into the entire supply chain process. The system allowed the dispatchers to track the location and status of each shipment in real time, enabling them to manage their logistics operations more effectively. The system also provided their customers with real-time updates on the status of their orders, leading to increased customer satisfaction.
The implementation of the TMS system was a significant success for our client. It led to a reduction in transportation costs, improved operational efficiency, and increased customer satisfaction. The company was able to optimize its dispatch process, manage its carriers more efficiently, and gain real-time visibility into its entire supply chain process. The TMS system provided the company with a competitive edge, making them more agile and responsive to the changing market conditions. In the long run, the implementation of the TMS system enabled the company to become more profitable, which is critical in today’s highly competitive business landscape. A little over three years after onboarding the TMS system, the average annual savings has been approximately 6.7% of freight spend, or $3.1MM.
