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

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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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