Key challenges
The client is the global market leader in the logistics industry, boasting an extensive network of warehouse space in Malaysia, catering to customers across diverse industries.
The client was challenged with a lack of strong visibility in its Distribution Center (DC) and transport network, identifying a significant opportunity to:
- Substantially improve operational efficiency.
- Increase control and visibility.
- Simplify the future network to support the business imperative of driving leverage and scale.
Our approach
TMX conducted a detailed analysis and assessment of the client’s transportation network in Malaysia for the top five customers from the FMCG sector with profitability health checks as well to identify opportunity to drive leverage.
Here is what we've delivered for our client:
- Developed a detailed network map with all the delivery addresses geocoded by deploying a TMX mapping engine. This enables the client’s future aspiration to adopt TMS as a routing tool to boost delivery efficiency.
- Established the baseline model of performance today both financially and transaction based at customer level. This enables the visibility of the entire network volume and operation model in order to identify improvement opportunities.
- Proposed a consolidation approach at sub-region level as the immediate improvement opportunity to leverage the currently isolated operations at customer level.
The results
The client was enabled with a full visibility of the transport network and profitability of the top five customers as well as the quick win opportunities for an optimized and more efficient way of utilizing the resources.