News

5Star benefits from rapid delivery of transport management solution from eCargo

Wednesday, June 24, 2009 by Struan Judd

5Star FMCG Distribution selects eCargo to deliver a cost effective transport management system within a matter of weeks.

After making the tough decision to withdraw from the domestic freight business and focus on Warehouse and Logistics activities, 5Star were faced with the problem of providing their existing customers with a freight solution without a full blown transport management system (TMS).

Forming New Zealand’s third largest transport group and the country’s largest privately owned transport company, 5Star FMCG and its associates are a major player in the local transport industry. 5Star’s customers included some of New Zealand’s biggest and best-known brands such as Nestlé, Sanitarium, Goodman Fielder, Lion Nathan, Griffins, Charlie’s and Phoenix Organics.

Having an existing relationship through common customers 5Star approached eCargo for a solution to create a managed transport service, connecting customers with a network of carriers throughout New Zealand.

We chose eCargo because of its ability to adapt and provide our requirements in such a short time frame. We were able to deliver to a large sub contractor network visibility of freight, the ability to provide key performance indicators and implement reverse billing within the 2 week period. This gave not only 5Star but our customers an interim and cost effective solution’ says Richard Tyson, General Manager, 5Star FMCG Distribution.

From start to finish eCargo was implemented within 2 weeks, providing 5Star with a system to automate the communication of customer freight requirements to their carrier network and manage the calculation and invoicing of freight costs to customers and carriers.

One of the main challenges was being able to deliver a working solution to our customers quickly, without impacting on their existing processes and data.’ says Colin Burrow, General Manager Information Technology, 5Star FMCG Distribution. ‘Selecting eCargo enabled us to meet this challenge, and in a cost effective manner. While the core offering provided most of the requirements, eCargo’s ability to quickly test and deploy minor but meaningful changes meant that we were not burdened with additional processes or their associated overheads

Collecting customer consignment data via electronic B2B interfaces, eCargo notifies the carriers through a web based application and automated messages. Upon dispatch freight costs are calculated ready for 5Star to invoice the customer and pay the carrier.

eCargo General Manager Tim Strawbridge says ‘We really enjoyed this project as it was a great example of how quickly eCargo can be implemented and start delivering benefits to the customer. It’s all about keeping freight management simple.

With its recent implementation for Foodstuffs NZ eCargo is a growing presence in the FMCG market for freight management solutions.

About 5Star FMCG Distribution

5Star FMCG has significant warehouse and logistics activities, from export container loading to full pick pack warehouse operations. 5Star FMCG is part of the Hooker Group which forms New Zealand’s third largest transport group and the country’s largest privately owned transport company. The combined strengths of Hooker Pacific, TNL and key strategic partners means that 5Star FMCG has the ability to provide transport for all New Zealand.

About eCargo Limited

eCargo represents the 'classic' start-up to fully fledged business story - starting life in a business incubator in Wellington, eCargo moved to The Icehouse in Auckland, before being purchased outright by Carter Holt Harvey in 2005.

eCargo’s Australasian customer base includes FMCG businesses such as Foodstuffs, Griffins, Sanitarium and Nestle, as well as industrial manufacturers Carter Holt Harvey Pulp & Paper, Woodproducts and Packaging divisions & Owens-Illinois Glass Packaging.

For further information, contact: info@ecargo.co.nz, 0800 322 746.

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What does the 2009 budget mean for the NZ transport industry?

Thursday, June 04, 2009 by Struan Judd

So what impact does the Budget 2009 have on the transport industry? We thought we'd help you answer this question by pulling together a summary of all the transport related changes we could find in the budget.

New roads

With around 70% of all freight in New Zealand going by road, new spending on the country's state highways is keenly sought after by the industry. Funding for highways needs to increase as good transport infrastructure is essential to growth.

The Finance Minister's Executive Summary of the Budget states that the new Government Policy Statement on Transport signals an increased investment in the state highway network of about $1 billion over the next three years. Total spending will be $10.7 billion over the next decade.

The additional funding over three years will come from three sources:

  • $420m reallocation from non-state highway classes (including savings on administration costs).
  • $258m in new Crown investment (paying for the NZ Transport Agency’s share of Wellington Passenger rail infrastructure).
  • $283m increases in fuel taxes (commencing 1 October and replacing regional fuel taxes).

 

Rail

In addition to $258 million of new rail funding, the Government has agreed to make a debt facility available to KiwiRail. This includes $115 million to fund its purchase of 20 new locomotives and to provide it with access to working capital.

Biodiesel boost

Energy and Resources Minister Gerry Brownlee announced that a new grants programme for biodiesel production will kick-start the biodiesel industry in New Zealand.

As part of Budget 2009, $36 million will be allocated to the programme over three years.  The grants will be available to domestic biodiesel producers selling their product to New Zealand consumers for a range of end uses.

Shipping

One glaring omission from the Budget 2009 is the lack of support for the maritime industry. The abandonment of the SeaChange strategy to build up New Zealand shipping in favour of building more roads could be a mistake. We need better state highways but an efficient nationwide freight network cannot be based on one or two key modes of transport. All modes need to be used as effectively as possible to compete against and compliment each other.

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