Page 37 - Case Study Annual 2015

The solution developed and implemented by Imperial statistics with exception-based Business Intelligence
Logistics was to combine all existing KwaZulu-Natal
facilities, including the bonded operation. The goal was
the consolidation of two raw materials warehouses and
one finished goods warehouse (imported and locally
produced) into one cost effective facility.
A strategically located warehouse that was capable
of housing the various operations was secured. This
would allow for maximum efficiencies and control.
Imperial’s solution encompassed the design and
management of a raw material distribution and storage
solution that includes the management of imported
bonded raw materials to the factory in Gauteng. It
also included freight forwarding and clearing services
for imported bonded and non-bonded raw materials,
as well as imported finished goods. This strategy was
designed to improve integration between bulk raw
material and primary distribution movements.
Warehousing in Gauteng was also optimised with all
products stored in two facilities servicing the Northern
Gauteng region, Mpumalanga and Free State.
Warehousing in the Free State was moved into a
multi-principal site servicing the greater Bloemfontein
and Northern Cape regions.
Imperial’s aim was to improve the reliability,
availability and responsiveness of TwinSaver’s inbound
supply chain through consolidated storage of all
inbound and imported materials, and the introduction
of a road bond operation to move raw materials to the
factory without clearing the products.
Imperial also sought to optimise bulk transport
through destuffing and warehousing in Durban.
By leveraging the scale of inbound operations,
Imperial would reduce overall logistics costs through
consolidating the secondary distribution operation with
the raw material and imports facility.
Further benefits of the solution included integration emissions reduced by 26% between 2012 and 2015.
across the supply chain through visibility of planned
and actual activity; integrated planning of primary
transport and supply and destination site activity;
integrated planning, ERP and other systems; and the
creation of relevant and accurate real-time logistics
(BI) reporting capability. In addition, logistics service
providers’ integrated and automated transport planning
and management could be leveraged.
Results
The consolidation of the various facilities was undertaken
primarily for the benefit of having the overall operation
under one roof. While some financial gain was expected,
this was not the driving force behind this project.
Benefits have been derived as a result of the new
facility’s location, with a reduction in travelling time and
distance from the port. The new facility’s location is also
in a more favourable position for primary and secondary
distribution. The overall outcome has been a reduction
in rates as well as a reduction in the company’s carbon
footprint.
On the administration side, the consolidation has
allowed for a single administrative unit dealing with
the total administration of the business, including the
bond store, which has translated into another reduction
in cost.
In terms of primary transport, which had previously
been supplied by multiple service providers with no
integrated planning, was now consolidated into a single
service provider with integrated planning. Reduced
turnaround and travel time has resulted in a 23%
reduction, with a single delivery and collection point
leading to a 20% reduction in the average length of
trips. Inbound and outbound planning consolidation
is ensuring back-to-back loading and associated cost
benefits. Another benefit was 12% reduction in carbon
emissions between 2012 and 2015.
This project has successfully reduced secondary
distribution travel time nationally and a 23% reduction
in average kilometres travelled, since the facility is
closer to the majority of customers and this has resulted
in an improvement in the daily stop count. Carbon
Warehousing has been optimised, with all products
stored in a single principal site rather than various multi-
principal sites. This has boosted efficiency and allowed
for a further cost saving.
Clearing and forwarding enhancements have been
achieved since all imports, including bonded goods, are
now in a single facility. The result is lower costs and a
reduction in handling and haulage.
While financial benefits were not the primary
motivation for this project, an overall cost saving of
5,4% has been realised.
The ongoing process of quality driven management
and commitment to continuous improvement has been
key to the success of this partnership. To date a number
of continuous improvement projects have delivered
very tangible benefits for TwinSaver. •
the logistics news case study annual 2015 35