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Transportation management solution from IBM and i2

Executive summary Business view Technical details
The goal
Need a better roadmap?
Keeping the rising costs of transportation management in check while maintaining customer service levels and reliable processes is becoming increasingly important in the logistics sector of the supply chain. As fuel costs and regulations have increased, decreases in workforce and customer-mandated delivery time have added new challenges to this segment.

The advantage
IBM and i2 have got the goods
Together, IBM and i2 offer a comprehensive portfolio of supply chain solutions designed to help businesses optimize their supply chains through integrated planning and execution.
  • IBM has more than 8,000 consultants dedicated to supply chain management services, more than 1,200 consultants dedicated to the consumer products industry, and one of the largest logistics practice areas in the world.
  • IBM offers an integrated approach to business process design using our business expertise, leading technologies and extensive experience.

As one of the leading providers of transportation management system solutions, i2 has offered proven inbound and outbound solutions since 1991.
  • i2 serves more than 200 transportation solution customers worldwide.
  • i2 solutions represent more than US$30B in combined annual freight spend.

The benefits
Control costs, improve service levels, reduce risk
i2 FreightMatrix™ helps you make improvements across your various operations, starting with dashboard-driven reporting and analytics to enable better forecasting and decision making. In addition, you could realize such advantages as:
  • Transportation cost savings through improved economies of scale, asset utilization and load allocation.
  • Increased visibility of inventory, orders, shipment status and loads for improved on-time delivery performance.
  • Better tracking of third-party logistics provider (3PL) partners, and more consistent operations from replacing disparate applications used by your 3PLs.
  • More organized scheduling, resulting in higher productivity for your employees and 3PLs.
  • Better accountability for compliance and audits.
  • Improved customer satisfaction resulting from more on-time deliveries and reduced damage in transit.
  • Enhanced collaboration and communication internally and with supply chain partners to help maximize shipment optimization and execution while eliminating inefficient and redundant procedures.
  • Increased centralized control over decentralized global operations.

The solution offers you the option of a predetermined, fixed asset cost, which frees you from the unpredictability of expenses that vary month to month or quarter to quarter based on usage. You can also choose a transaction-based fee structure if that is more suitable for your operations.

The approach
Crafting savings and efficiency
When the largest retailer of arts and crafts materials in the United States decided to bring transportation operations in house, it sought a solution that would support its processes from planning to payment.

For operational planning and execution, the company implemented i2 FreightMatrix components: solutions that synchronize critical transportation and distribution business processes, resulting in optimal cost and service performance.

The implementation not only went according to the company's timeline, but was completed within its budget. Some of the cost savings that have contributed to achieving full ROI have occurred through the significant personnel efficiencies that the company has realized.

The financial advantage
Accelerate your return on investment
Realizing a return on your investment is the goal of any new strategy. Based on our experience, this comprehensive solution can help you see many happy returns. Our solution is designed to offer:
  • Improved flexibility and scalability to accommodate changing business requirements.
  • Lowered implementation risk.
  • Reduced time to deployment.
  • Better transportation asset utilization.
  • Increased on-time performance, customer service levels and abilities to manage exceptions.
  • Network design and analysis savings as much as 8-20%.
  • Transportation procurement savings as much as 3-15%.
  • Transportation planning savings as much as 5-15%.
  • Transportation execution savings as much as 5-10%.
  • Monitoring and visibility savings as much as 5-10%.

Next steps
 
Questions about this solution? Contact an IBM consumer products specialist.



More information
IBM Global Business Services
The GMA 2005 Logistics Survey: Supply chain performance in food, grocery and consumer products
Logistics