Italtile Reaping the Benefits of Supply Chain and Transport Optimisation
>80%
Increase in system-wide Turnover.
56%
Growth in Transporter Pool.
97.3%
Ave Weight Utilisation.
In the dynamic world of supply chain management, efficiency and integration are paramount. This was vividly illustrated by James Mason, Group IT Executive at Italtile Limited, during his presentation at the 2024 SAPICS Conference.
The event, renowned as Africa’s premier supply chain profession gathering, provided the perfect platform for Mason to share Italtile’s success story—a testament to the transformative power of supply chain optimisation in partnership with Inhance Supply Chain Solutions.
The Challenge
Fragmented Supply Chains
Historically, Italtile’s approach to supply chain management was fragmented, with order planning, load building, and transport planning treated as separate entities. This siloed method, common across many industries, often leads to inefficiencies and higher costs.
Italtile, a leading manufacturer and retailer in South Africa, operating seven factories and shipping over 2,900 tons daily, needed a more cohesive strategy to streamline operations and enhance visibility across their supply chain.
The Solution
Integrated Network Planning
In collaboration with Inhance Supply Chain Solutions, Italtile embarked on a journey to dismantle these silos. By replacing traditional transport planning with Inhance’s integrated network planning solution, Italtile achieved remarkable results.
The integrated solution offered a comprehensive view of operations through a logistics control tower, intelligently managing orders from placement to delivery. This system dynamically built, planned, and allocated least-cost transport routes, managing orders through to customer delivery, ensuring constant visibility and optimisation.
Key Benefits
The integration led to substantial improvements. Italtile experienced a turnover increase of more than 80% and transport cost savings exceeding 20%.
Additionally, logistics efficiency enhancements reduced truck turnaround times by 53%, improved delivery lead times, and increased average weight utilisation by 97.3%.
The solution also fostered better stock demand forecasting and planning, reducing stock-holding and improving stock turns on raw materials.
Enhancing Customer and Transporter Satisfaction
The benefits extended beyond operational metrics. Customer service and satisfaction saw significant boosts due to improved logistics efficiency. Furthermore, the integration supported Italtile’s commitment to Environmental, Social, and Governance (ESG) goals. The transporter pool grew by 56%, including black-owned SMEs, enhancing transporter satisfaction and sustainability. Carbon emissions were reduced through trip optimisation, and manual processes, along with associated paper use, were minimised.
Continuous Improvement and Future Goals
Italtile’s journey is a testament to continuous improvement. With Inhance, the company plans to implement auto allocation, electronic proofs of delivery, and automated invoicing, aiming for a fully autonomous supply chain. These advancements will benefit all stakeholders, including Italtile, its customers, and transporters.
A Blueprint for Growth
Italtile’s success story underscores the importance of viewing supply chain and logistics as competitive advantages rather than cost centres. The partnership with Inhance Supply Chain Solutions illustrates how strategic collaboration and innovative supply chain solutions can drive substantial growth and efficiency. As Mason urged the SAPICS Conference attendees, organisations must continually assess their supply chain strategies to transform them into their strongest assets.
The 2024 SAPICS Conference, attended by over 750 supply chain managers from 30 countries, served as a powerful reminder of the critical role supply chains play in today’s business landscape. Italtile’s achievements, powered by Inhance’s expertise, provide a compelling blueprint for other organisations seeking to enhance their supply chain capabilities.
