BlueScope Steel: Freight Management
The Linfox Freight Management System (FMS) supports global load planning, domestic and international shipment tracking, and hand-held technologies. It has provided operational improvements and cost reductions at multiple points on the supply chain.
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Coordination of the inbound freight from multiple suppliers without clear visibility of shipments is complex and causes significant operational problems at receiving docks of distribution centres. |
Customer Overview
BlueScope Steel is the leading steel company in Australia and New Zealand, supplying a large percentage of all flat steel products sold in these markets. The company’s products play a big part in people’s everyday lives, as vital components are used in suburban houses, landmark buildings and structures, popular makes of cars, and containers for food and beverages. As the leading steel company in Australia and New Zealand, BlueScope Steel ranks among the leading industrial corporations on the Australian Stock Exchange.
The Situation
In mid 2005 Linfox was requested to provide a solution for BlueScope Steel that involved, replacing the existing 15 year old trailer fleet with new purpose built equipment. The manufacturer was looking at new ways to reduce costs and focus on enhancing its manufacturing excellence, maintaining value in its existing businesses and pursuing selected growth opportunities, particularly in the company’s primary markets of Australia, New Zealand and Asia.
The Challenge
- BlueScope Steel was looking for an integrated solution that could provide automation and functionality
- Virtually 100% manual customer information capture/response
- Multiple non strategic systems supporting the process
- Diverse business process across the company
- Equipment and training in need of a refresh
- Safety KPIs to be within the manufacturer standards
Why Linfox?
Linfox could provide BlueScope Steel with the ability to cost effectively manage freight volumes, with clear visibility of shipments and delays in the shipping process. Linfox had the ability to tailor Freight Management Systems (FMS) to suit the steel industry instead of offering a generic product that is deployed across all industries.
The Linfox Solution
Linfox assumed control of primary freight operations and infrastructure on behalf of BlueScope Steel. We consolidated significant amounts on inbound freight volumes, automated operating processes and reduced the shipping costs associated with those volumes.
Linfox replaced the existing systems with Linfox FMS. FMS is an integrated SAP module that is linked with Logistics Modules in SAP to provide visibility of the total supply chain from the time that an order is released for fulfilment through to the end customer.
The Results
The operational outcomes of this project were:
- Increased delivery tracking capabilities providing greater fleet control and utilisation.
- Streamlined load building and scheduling operations.
- Enhanced customer service standards.
- Automated processes from order entry to invoicing.
- Improved fleet control and utilisation through analysis of supply chain data.
- Customer billing consolidation.
- Continued and enhanced customer service standards.
The business outcomes of this project were:
- The new system enabled further Business Process Re-engineering (BPR) implementations, providing significant warehouse and transport labour savings.
- Reliable, robust system operations.