Woodgrain Mills: Reducing Costs While Shipping on Time with SAP Transportation Management
We hear from customers everywhere that the “old” building products value chain is changing with the changing of relationships and the use of digital technology. This comes from changes in profitability within business segments, more connected value chain partners, and highly interactive processes that are now executed in near real time.
Transportation is seeing tremendous efficiency gains – with companies consolidating orders and increasing the return on their transportation spend. Leading companies are more accurately forecasting demand and shipment volumes to fine-tune transportation planning. they are enhancing freight, fleet, and logistics management. they are gaining real-time visibility into global and domestic shipping across all transportation modes and industries.
bottom line – they are reducing transportation spend increasing their ship on time rates.
Woodgrain Millwork is one of these thought leading companies.
Consumers don’t know how long and complex the supply chains are that lead to their desired product – a door, for instance: The wood is harvested from renewable South American forest plantations. Lumber is shipped to warehouses. Configuration specs are drawn up and delivered. The finished door is transported and delivered to the customer on time and to order, as it should be. Yet the intricacies of supply chain and transportation management are not trivial, not even for Woodgrain Mills Inc., a U.S.-based company that imports materials from South America and Asia. Consolidating its processes on one platform had become critical. SAP Transportation Management software enabled it to centralize transportation management and equip its experts to perform long-term support. Although the supply chain remains as complex as ever, prompt delivery of mouldings, doors, and windows to customers has become more cost-effective than ever.
What are come of the benefits of the new solution:
- Double-digit Growth in sales supported seamlessly
- Reduced Costs through significantly lower freight spend
- Consolidated From 7 local transportation planners to 1 centralized planner
- Higher On-time ship rates and fill rates
- Ability to take an order up until 3 p.m. and still deliver the next morning
- Flexible business platform that supports customer servicing at a low cost
- Ability to handle last-minute schedule changes and still meet delivery expectations and ship according to rate agreements
- Support for new channels and services, including third-party logistics services