Case Study - Transwide improves transportation execution performance for Carmeuse Group

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INFORMATION: Free information is available from TRANSWIDE on the subject in this story. Click here to request a copy

The Carmeuse Group is an international organisation generating nearly 1 billion USD in annual revenue. Founded in 1860, operating in 22 countries with over 100 production plants worldwide, Carmeuse manufactures and ships more than 58 million tons of lime and limestone products per year. Carmeuse Lime & Stone is the largest producer of lime and limestone products in North America with 39 facilities, manufacturing and distributing approximately 34 million tons yearly. 

Initial situation

Transportation is an essential part of Carmeuses day-to-day business:-

Intricate situation with some customers managing the transportation versus others requiring Carmeuse to manage it.

Multimodal Transportation via lake vessel, barge, train and truck.

Management of the truck transportation is very complex, time consuming due to manual processes leading to increasing cost. 

Identified business process concerns

Manual load tendering leads to cost inefficiency and errors.

No visibility on truck arrival at plant leads to inefficiencies such as bottlenecks and/or ineffective resource planning.

Difficulties receiving accurate delivery information leads to delays in invoicing.

Limited Shipment information visibility for the Customer Service Team impacts customer satisfaction and service levels.

Lack of visibility on carrier efficiency impacts the ability to monitor Key Performance Indicators (KPIs). 

Additional business process requirements

Shift site transportation coordinators function from a truck scheduling to a production planning.

All shipments need to be scheduled 24 hours in advance.

Carriers and/or Customers schedule their own pick-up times via a web based system.

Improve Customer Service with shipment information visibility allowing advanced schedule planning, track arrival & departure times and monitor delivery status. 

The selection of the ideal partner Transwide

Based on this analysis and following an in-depth market review, Carmeuse selected the following modular solutions from Transwide: 

Business concern: Manual load tendering

Solution and Transwide module: Electronic Load tendering twCall-off 

 

Business concern: No visibility on truck arrival

Solution and Transwide module: Appointment scheduling twSlot

 

Business concern: No visibility of planned loading volume

Solution and Transwide module: Appointment scheduling twSlot

 

Business concern: Difficulties accessing Proof of Delivery (POD)

 

Solution and Transwide module: Electronic Proof of Delivery twDoc

 

Business concern: Limited execution information for the Customer Services Team

Solution and Transwide module: Track & Trace twTrace

 

Project implementation:

The actual implementation was accomplished in 8 months.

Initially, Carmeuses central ERP system (SAP) was connected to Transwide, allowing electronic Supply Chain data exchange.

The project was rolled out in 6 concurrent steps with 1 to 4 Carmeuse production sites in each region: 

 

Prepare 

Phase 1 

Jul/Aug07   Interface with Carmeuse SAP Established

Pilot set-up 

Phase 2 

Sept07 / Oct07 Pilot in Annville, PA

Appointment scheduling

Remaining modules solutions

End Oct07 Pilot review and full rollout approval

 

Deploy 

Phase 3 

Nov07 Chicago Region 

Mar08 Ohio Region 

Apr08 Kentucky 

May08 Longview Rockwell 

June08 - Canadian Region

14 Plants in 8 months

Each Region followed the same operational schedule; this rollout process lasted 2 to 4 weeks, depending on the sites specific needs.
 

Week 1

Carmeuse informed all involved parties

On-site Carmeuse users, site coordinators, Customer Service Team

All carriers 

Week 2

Transwide & Carmeuse co-managed the set-up

Carmeuse provided all required data: plant, users

Jointly created plant specific schedules 

Week 3

Carmeuse planned training sessions

1-2 days on-site depending on the number of carriers

Carmeuse users and carriers received training & application Quick Guides
 

Week 4

Go live

Carmeuse IT team coordinated seamless transition to TW

Project Managers actively involved in post implementation follow-up

Activity reporting and KPI analysis by use of twData
 

Results of a successful implementation

Based on Transwides customers performance in the large manufacturing sector, the following significant results were realised:

Better Planning and Managing of resources- Increased quantities loaded with the same workforce and equipment by approximately 10%

Increased on time deliveries by 20 %

Reduction in freight claims by 12% 

Carmeuse expects to meet or exceed the above results through the following performance areas:

Increased Supply Chain efficiency

Standardization of North American transportation processes

Increased visibility of transportation information

Less manual communication required between site coordinators and carriers

Ease of use for carrier scheduling, similar to an airplane flight and selecting your seat location

Improved Customer Satisfaction through higher level of service

Electronic archiving of PODs leading to POD available less than 48 hours after delivery

Proactive Customer Service approach as a result of access to real time Shipment status information

The financial impact of these performance improvements is significant:

Shortened invoicing cycle through POD information being directly accessible on the Transwide website

Improvement in debt collection through reduction of loads written off

Immediate reduction of demurrage cost (especially from delays due to internal organisation issues)
 

Our customers, carriers and internal stakeholders have been very impressed with the quality of the Transwide system, the ease of its implementation and the immediate impact it is having on customer service. Jack Fahler, VP Supply Chain.

Transwide has provided the foundation on which the continuing evolution of our Supply Chain stands. Through Transwide we will have the real time visibility needed to make quick, smart decisions to enable us to exceed our customers expectations. Eric J. Segal, Manager, Production Planning & Transportation. 

Transwide helped our Customer Service and Collections Department with a concerned customer notifying us about a short shipment. Thanks to the immediate availability of POD information on the Transwide website, we were able to verify that the specific load had been accepted and shipped. As a result Carmeuse saved several thousands USD in sales and a customer relationship. Stephanie Pilarski, Traffic Analyst.

INFORMATION: Free information is available from TRANSWIDE on the subject in this story. Click here to request a copy

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