11%
REDUCTION IN
TRANSPORT COSTS
98%
DIFOT
100%
CUSTOMER
RETENTION
The Challenge
The printing industry is one of the most time sensitive industries in the marketplace – if you don’t have the product in the right place at the right time the order goes to the one that does. This leading paper merchant was losing clients and orders due to the incumbent interstate bulk carrier failing to meet the service level expectation that was required to ensure they were not losing sales.
Because of the large complexity of over 2500 SKU's, having the right product in the right place to meet customer demand was simply not possible. This resulted in the business sending large volume sales orders interstate to meet customer orders.
The incumbent was not communicating delays, damaged freight and in some cases not even turning up to collect the freight. This prevented them from proactively communicating with its customers to meet the strict deadlines on print orders and this was resulting in lost sales and inturn customers.
The Solution
We identified one of the main challenges as being the delivery time and expectations of the state based DC's. Once this was understood and the flow on effect to their business it was having, we were able to press forward and provide the solution.
Communicating the shipment status each morning to the receiving DC's ensured proactive communication to their end clients. Our customer was able to communicate if an important deadline was going to be missed. It also allowed enough forward planning to inform the printers to reschedule jobs if needed and most importantly that sales orders were not being lost.
This was complemented by a streamlined IT dispatching function that ensured all parties had access to the information required.
An incentivised rate card with weight breaks was implemented to ensure that the landed cost of the product was achieved through proactive consolidation.
The Results
The results were immediate.
A reduction in lost sales and customer complaints was the first noticeable flow on effect to the business and an nationwide service standard with a high level of delivery in full on time (DIFOT) was achieved.
The client now has confidence in selling its product to the marketplace knowing that they can set a delivery expectation to their client that will be met and that confidence and service level provides them with an enormous point of difference in the market place.
HQ LOCATION
343 New North Road
Kingsland, Auckland, NZ 1021
TELEPHONE
0800 896 757 (NZ)
