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Holistic Transportation Management System

Holistic Transportation Management System. Brad Moose Director – Supply Chain L’Oreal USA May 14, 2013. Transportation Savings: H-TMS . Cost reduction levers; Leveraged freight purchasing: 2-3% Single ship origin optimization: 1-2% “Holistic: freight optimization: 3%+

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Holistic Transportation Management System

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  1. Holistic Transportation Management System Brad MooseDirector – Supply Chain L’Oreal USA May 14, 2013

  2. Transportation Savings: H-TMS • Cost reduction levers; • Leveraged freight purchasing: 2-3% • Single ship origin optimization: 1-2% • “Holistic: freight optimization: 3%+ • Optimization defined: • Identify opportunities to commingle orders in transit to save money & lower emissions w/out impacting delivery service • Holistic Routing: • Remove existing division freight management silos & optimize all L’Oreal freight together

  3. Removing Freight Management SiloesFunnel siloed order banks into a common queue ORDER ORDER ORDER ORDER ORDER ORDER ORDER ORDER ORDER Intra DC & FIREorder consolidation Intra DC & FIREorder consolidation Intra DC & FIREorder consolidation TMS TMS Inter-originconsolidation via SheerTrans TMS

  4. Benefits Summary • Software-as-a-Service deployment advantages: • No capital investment • Scalable model • Financial benefit: • $2.5 million first year • Sustainability benefit: • 2.5 million lbs. CO2 emissions reduction/year • Service & operational benefits: • Greater control & visibility • Comprehensive database for all L’Oreal USA spend • Cost-to-serve reporting, accurate accruals & budget support

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