TMS Transformation Drives Supply Chain Optimization

Client Context

A wire and cable manufacturer was experiencing high freight expenses and declining service levels due to decentralized, non-standardized transportation processes and inefficient execution caused by outdated ERP/WMS systems.

EFESO was engaged to design and implement a Transportation Management System (TMS) to:

• Increase collaboration with suppliers and carriers.
• Maximize capacity utilization and optimize freight spend.
• Lower total landed transportation costs while improving service levels.
• Enhance global logistics visibility and scalability.
• Develop performance measurement and incentives for continuous improvement.

Key Challenges

• Inefficient, decentralized order-to-delivery processes.
• Limited real-time visibility into transportation metrics.
• Rising freight costs and suboptimal carrier collaboration.
• Lack of flexibility in global logistics operations.
• Outdated ERP/WMS systems that hindered performance improvements.

Approach & Key Success Factors

EFESO led the transformation by:

1. Assessing order-to-delivery processes

   • Conducted in-depth process evaluations to identify inefficiencies.
   • Prepared RFI and RFP for TMS vendor sourcing.

2. Managing TMS vendor selection

   • Led contract negotiations to secure best pricing.
   • Ensured system scalability for future growth.

3. Reengineering shipping processes

   • Standardized corporate and warehouse operations.
   • Implemented change management initiatives to drive adoption.

4. Implementing real-time delivery visibility & performance tracking

   • Established weekly KPI reports for proactive issue resolution.
   • Integrated real-time monitoring for escalations and planning.

5. Adding a TMS procurement tool at no cost

   • Negotiated a free TMS procurement tool as part of the vendor contract.
   • Enabled independent LTL/TL carrier rate bids, leading to estimated $1.75 million annual savings.

Results

TMS implemented

In just 11 months, well below the industry average of 18 months.

$1 million

Savings through optimized vendor contract negotiations.

No budget overrun on the $2 million implementation budget.

$6 million

Base case savings, with potential to reach $10 million.

Faster savings realization, freeing up working capital for reinvestment.