ML Summit 2013 Speaker Presentations: L'Oreal: ML 100 Award Project
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Holistic Transportation Management System Brad Moose Director – Supply Chain L’Oreal USA May 14, 2013
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Holistic Transportation Management System
Transcript of ML Summit 2013 Speaker Presentations: L'Oreal: ML 100 Award Project
Holistic Transportation Management System
Brad MooseDirector – Supply Chain
L’Oreal USAMay 14, 2013
Transportation Savings: H-TMS • Cost reduction levers;
• Leveraged freight purchasing: 2-3%• Single ship origin optimization: 1-2%• “Holistic: freight optimization: 3%+
• Optimization defined:• Identify opportunities to
commingle orders in transit to save money & lower emissions w/out impacting delivery service
• Holistic Routing: • Remove existing division freight
management silos & optimize all L’Oreal freight together
Removing Freight Management SiloesFunnel siloed order banks into a common queue
Intra DC & FIREorder consolidation
Intra DC & FIREorder consolidation
Intra DC & FIREorder consolidation
Inter-originconsolidation via SheerTrans TMS
ORDER
ORDER
ORDER
ORDER
ORDER
ORDER
ORDER
ORDER
ORDER
TMS TMS
Benefits Summary
• Software-as-a-Service deployment advantages:• No capital investment• Scalable model
• Financial benefit: • $2.5 million first year
• Sustainability benefit:• 2.5 million lbs. CO2 emissions
reduction/year
• Service & operational benefits:• Greater control & visibility • Comprehensive database
for all L’Oreal USA spend• Cost-to-serve reporting,
accurate accruals & budget support
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