Case Studies Multinational Retailer Transforms Procurement and Logistics Processes to Lower Costs and Improve Service

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	Multinational Retailer Transforms Procurement and Logistics Processes to Lower Costs and Improve Service

Multinational Retailer Transforms Procurement and Logistics Processes to Lower Costs and Improve Service

Technology Category	Functional Applications - Inventory Management Systems Functional Applications - Remote Monitoring & Control Systems Functional Applications - Transportation Management Systems (TMS)
Applicable Industries	Retail
Applicable Functions	Logistics & Transportation Procurement Warehouse & Inventory Management
Use Cases	Fleet Management Inventory Management Supply Chain Visibility Track & Trace of Assets
Services	Software Design & Engineering Services System Integration
Challenge	This leading European multinational retailer faced significant challenges in managing its large-scale procurement and logistics operations. The company places over 100,000 purchase orders annually with more than 800 suppliers worldwide. The existing transportation management system (TMS) lacked the sophistication to gather and organize shipment information from suppliers, making it difficult to track inbound goods to distribution hubs. Additionally, the supply chain team was not receiving timely updates from ocean carriers and freight forwarders, which handle over 50,000 twenty-foot equivalent units (TEUs) each year. The retailer aimed to reduce costs and reliance on freight forwarders by utilizing in-house logistics teams. The new technology solution needed to offer broad capabilities, including order and supplier collaboration, transportation planning, and shipment execution on a single platform. Read More
About Customer	The customer is a leading European multinational retailer that has grown from a single location to thousands of storefronts and hundreds of thousands of employees worldwide. It ranks among the top ten retailers globally by gross revenues, serving millions of customers both in stores and online. The company places a high value on inventory management and product availability to provide excellent service to its shoppers. With over 100,000 purchase orders placed annually with more than 800 suppliers worldwide, the retailer's operations are vast and complex. The company sought to improve its procurement and logistics processes to better serve its customers and reduce operational costs. Read More
Solution	To address these challenges, the retailer decided to replace its legacy Oracle Transportation Management (OTM) system with a suite of applications from e2open. E2open was chosen due to its existing partnership with the retailer and its proven capabilities in trade compliance and shipment visibility. The new solution included multiple e2open applications such as Purchase Order Collaboration, Transportation Management, Bookings, and Logistics Visibility. These applications provided a centralized platform for all supplier and service provider communication, standardizing processes across the retailer's functional teams. The solution also offered a repository for customs compliance and supplier quality documentation, essential for fast border crossings. Additionally, the system enabled shipment forecasting and reservations to secure capacity in bulk, even before suppliers executed specific booking requests. E2open conducted a proof-of-concept project to validate its capabilities, successfully providing accurate and timely tracking information for shipments over several months. Read More Log in to view content
Contents

Technology Category

Functional Applications - Inventory Management Systems

Functional Applications - Remote Monitoring & Control Systems

Functional Applications - Transportation Management Systems (TMS)

Applicable Industries

Retail

Applicable Functions

Logistics & Transportation

Procurement

Warehouse & Inventory Management

Use Cases

Fleet Management

Inventory Management

Supply Chain Visibility

Track & Trace of Assets

Services

Software Design & Engineering Services

System Integration

Challenge

This leading European multinational retailer faced significant challenges in managing its large-scale procurement and logistics operations. The company places over 100,000 purchase orders annually with more than 800 suppliers worldwide. The existing transportation management system (TMS) lacked the sophistication to gather and organize shipment information from suppliers, making it difficult to track inbound goods to distribution hubs. Additionally, the supply chain team was not receiving timely updates from ocean carriers and freight forwarders, which handle over 50,000 twenty-foot equivalent units (TEUs) each year. The retailer aimed to reduce costs and reliance on freight forwarders by utilizing in-house logistics teams. The new technology solution needed to offer broad capabilities, including order and supplier collaboration, transportation planning, and shipment execution on a single platform.

About Customer

The customer is a leading European multinational retailer that has grown from a single location to thousands of storefronts and hundreds of thousands of employees worldwide. It ranks among the top ten retailers globally by gross revenues, serving millions of customers both in stores and online. The company places a high value on inventory management and product availability to provide excellent service to its shoppers. With over 100,000 purchase orders placed annually with more than 800 suppliers worldwide, the retailer's operations are vast and complex. The company sought to improve its procurement and logistics processes to better serve its customers and reduce operational costs.

Solution

To address these challenges, the retailer decided to replace its legacy Oracle Transportation Management (OTM) system with a suite of applications from e2open. E2open was chosen due to its existing partnership with the retailer and its proven capabilities in trade compliance and shipment visibility. The new solution included multiple e2open applications such as Purchase Order Collaboration, Transportation Management, Bookings, and Logistics Visibility. These applications provided a centralized platform for all supplier and service provider communication, standardizing processes across the retailer's functional teams. The solution also offered a repository for customs compliance and supplier quality documentation, essential for fast border crossings. Additionally, the system enabled shipment forecasting and reservations to secure capacity in bulk, even before suppliers executed specific booking requests. E2open conducted a proof-of-concept project to validate its capabilities, successfully providing accurate and timely tracking information for shipments over several months.

Impact #1	The retailer now has better control and visibility into inbound inventory, capturing sales order data and providing logistics planners with options to optimize and consolidate shipments.
Impact #2	The solution maximizes container utilization and ensures access despite tight capacity, enabling internal teams to manage booking activities and make advanced reservations with contract carriers.
Impact #3	The retailer can compare actual freight costs to quoted rates, execute vendor bookings, and easily track inventory in transit, providing reliable, real-time status of goods on the move for all modes, regions, and legs of a shipment.

Impact #1

The retailer now has better control and visibility into inbound inventory, capturing sales order data and providing logistics planners with options to optimize and consolidate shipments.

Impact #2

The solution maximizes container utilization and ensures access despite tight capacity, enabling internal teams to manage booking activities and make advanced reservations with contract carriers.

Impact #3

The retailer can compare actual freight costs to quoted rates, execute vendor bookings, and easily track inventory in transit, providing reliable, real-time status of goods on the move for all modes, regions, and legs of a shipment.

Benefit #1	The retailer aims to achieve an estimated $15 million in savings over three years.
Benefit #2	Cost savings are expected from improved visibility with reliable data, reducing manual work and time spent asking partners for updates.
Benefit #3	Reduced time and resources spent managing operations and handling exceptions.

Benefit #1

The retailer aims to achieve an estimated $15 million in savings over three years.

Benefit #2

Cost savings are expected from improved visibility with reliable data, reducing manual work and time spent asking partners for updates.

Benefit #3

Reduced time and resources spent managing operations and handling exceptions.

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Overview

Multinational Retailer Transforms Procurement and Logistics Processes to Lower Costs and Improve Service

Operational Impact

Quantitative Benefit