CAN YOU REDUCE TRANSPORT COSTS AND MAINTAIN CUSTOMER SERVICE?

Companies are facing the increasingly tough challenge of simultaneously maintaining high levels of service and looking for ways of deferring increases -- all in addition to pressure to actually reduce costs. So, if companies are to remain competitive, profitable and responsible, they must seek ways...

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Bibliographic Details
Published in:Supply Chain Europe 2012-01, p.14
Main Author: Fawkes, Tim
Format: Article
Language:English
Subjects:
Carbon
Case studies
Cost control
Cost reduction
Customer services
Distribution centers
Emission standards
Greenhouse gases
Industrial equipment
Management reports
Web portals
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Summary:Companies are facing the increasingly tough challenge of simultaneously maintaining high levels of service and looking for ways of deferring increases -- all in addition to pressure to actually reduce costs. So, if companies are to remain competitive, profitable and responsible, they must seek ways to improve efficiency and visibility within the supply chain and measure service levels and costs. JCB Service, the division of JCB responsible for providing replacement parts, sets high standards of customer service and aims to provide availability within 24 hours in 95% of cases, through its distribution network. A major reason behind the involvement of transport management company 3t was that, although the service business had grown significantly since 2000, the focus had been centred on providing a high service level, which resulted in a disproportionate increase in associated transportation costs. The systems implemented by 3t for JCB have been designed with scalability in mind and are available for other companies.
ISSN:1742-447X