pg-bison
Yields R40m annual logistics cost-saving benefit
PG Bison went through a major restructure of its business during 2012 and 2013, which resulted in a rationalisation of its product range, customer base, assets and various internal operations and processes.

This created the basis on which PG Bison has now been able to consolidate its warehousing and freight functions into a single integrated process with optimised route planning to reduce kilometres travelled.

A bulk flat deck freight service provider with a significant established footprint was selected as a logistics partner in this process. In-house and outsourced teams worked closely together to understand and optimise the logistics value chain. Solutions were implemented into the process, from warehouse management to customer delivery.

  • Customers, distribution sites and delivery zones were mapped and combined with improved production planning and inventory management in order to reduce kilometres travelled during the delivery process
  • Warehouse operations were optimised and new equipment introduced
  • New freight planning software was introduced
  • Cross-docking facilities were introduced
  • Return load benefits were exploited through improved route mapping
  • Preferential freight rates were negotiated

STRATEGIC DRIVERS:

High barriers to entry

Lowest-cost producer

IMPLEMENTATION:

Consolidation of warehousing and freight into a single integrated process with optimised route planning to reduce kilometres travelled

BENEFIT:

Lowest-cost product to market
Reduced delivery times, improved customer satisfaction and increased margin

RESULT:

Preferential freight rates were negotiated and yield an annual saving of R25m. Optimising the point of supply reduces the number of kilometres travelled for customer deliveries and yields an annual saving of R15m.

Start typing and press Enter to search