Our Customers
Sanitarium distribution a picture of health
Renowned NZ health food company strengthens
its distribution process with eCargo, realising significant cost
savings and efficiency gains.
Makers of iconic health food brands such as Weet-Bix and
Marmite, Sanitarium dispatches several tens of thousand cases of
their product each week. From distribution centres in Auckland and
Christchurch, deliveries are transported to hungry customers the
length and breadth of New Zealand.
The Challenge
Before implementation of the eCargo freight management tool,
Sanitarium's distribution operation was supported by predominantly
manual processes, extremely time consuming, complex and prone to
human error. Sanitarium knew great benefits could be gained by
streamlining their distribution process and providing more
visibility throughout the supply chain.
Verifying outbound freight charges from external transport
providers was especially time consuming and problematic. Dealing
with hundreds of shipments each week, a company accountant was
employed just to check the unrelenting stream of freight invoices.
Freight invoice reconciliation is recognised as an ordeal for most
large distributors.
The Solution
The eCargo system provided Sanitarium with a total freight
management solution. Implementing eCargo's flexible technology
platform enabled Sanitarium to easily plan, execute, manage and
measure performance relating to movement of all their product.
Using web based communication and integration with existing
inhouse systems, eCargo centralised the relationship between
parties in the Sanitarium supply chain. eCargo automated the
error-ridden manual tasks and provided critical information to
everyone instantaneously - in line with identified business
rules.
Sales orders flow seamlessly from Sanitarium's SAP system
directly into eCargo. Job details are immediately available to
nominated carriers and consignment lifecycle tracked in real-time
by all parties.
Amongst the many benefits eCargo offered, Sanitarium eagerly
hailed the introduction of reverse freight billing. Storing freight
rates and criteria directly within eCargo means accurate costs are
calculated based on reliable information as soon as consignment
delivery is confirmed. Carriers upload their freight invoices
electronically, which eCargo reconciles automatically. Sanitarium
then check any exceptions and approve in a timely manner. Approved
invoices are exported back into SAP for payment.
Benefits and Outcomes
Sanitarium reported significant benefits almost immediately upon
implementing the eCargo system. Effectively changing the way they
went about their freight business, an initial 20% reduction in
vehicle usage and 10% gain in administration efficiency was
recognised after only five weeks.
"In the longer term, smoother workflow has resulted in three
less full-time employees being required. Operational costs, as a
percentage of sales, have decreased by 30%, whilst experiencing a
25% increase in delivery volumes over five years".
"The reality of reverse billing has hugely reduced effort
required by the finance team, freight costs are more accurate and
the freight supplier relationship has strengthened markedly. Costs
are largely accepted as there's nothing to question and invoice
negotiation is a thing of the past. The weekly reconciliation
process now takes 10-15 minutes at the click of a button, and is no
longer so reliant on key staff" says Levett.
For Sanitarium, the human perspective is also important. Levett
says "Staff at different levels can often be resistant to change,
but eCargo gained cultural acceptance within the organisation very
quickly". Sanitarium dispatch staff find it hard to recall now how
things were ever managed before.
http://www.sanitarium.co.nz/