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Transportation Management Services
Cutting the cost of the transport system by 15 – 20% is the most obvious and urgent
benefit – other equally important benefits follow.
TMS is a high-level process that optimises the transport solution where a company
has multiple sources and multiple destinations for its product, often utilising
multiple service providers. Benefits are evident on large fleets where this unique
solution can save up to 20% of total transportation costs, whilst at the same time
reducing assets employed and lead times. It also improves both cash and information
flow to the client, and service levels to the customer.
The Barloworld Solution
Barloworld Logistics is the only organisation implementing and operating transportation
optimisation solutions in South Africa. The solution is cost effective on large
fleets and we have achieved for one client a saving of R 25 million per annum.
Because Barloworld Logistics is itself an operator of a substantial fleet for dedicated
clients, our transportation optimisation solution is implemented in the full light
of the practicalities involved in running a fleet of vehicles.
Our offering is differentiated from procurement models and from fleet optimisation
models in that it achieves both at once. The result is a fully utilised fleet and
a completely paperless system. On-line Internet visibility of the entire system
increases client control and service levels, and dramatically improves flexibility
Barloworld recognises that the key to modern logistics practice is the ability to
measure and to continuously improve the system. Continuous improvement is thus part
of our standard procedure for TMS.
We are prepared to invest both time and capital into TMS solutions for our clients
and are prepared to guarantee cost savings on the basis that we share in the benefits
- Audit existing processes, suppliers, customers, sources of product and service levels.
- Establish minimum standards for:
- Service levels
- Select and grade transporters on the basis of
- Service levels
- Appropriateness of equipment
- Understand how TMS can integrate with and improve the rest of the supply chain.
- Establish a learning system in terms of the above criteria.
- Build relationships with transporters based on both fixed and variable costs and
- For clients: to drive cost per ton down
- For transporters: to increase loads per day
- Optimise on a continuous basis for the benefit of all stakeholders and to establish
Benefits for Clients
- Significant decreases in transportation costs
- Higher reliability levels
- Internet based visibility of the system
- High level information on sales and service levels
- Continuous improvement built into the transportation function
- Improvement in relationships with customers and transport suppliers
- Improved cash flow
- Elimination of paperwork
- Reduction of assets employed