Ceramic Industries Primary Transport
Network Transport Solution Delivers Award Winning Result
Overview
Ceramic Industries is a leader in the design and manufacture of ceramic tiles and bathroom ware and manufactures one out of every two tiles, baths and toilets purchased in South Africa. The Group comprises five tile factories, a sanitaryware factory and an acrylic bath factory, all based in Gauteng, South Africa. Shipping in excess of 45 thousand tons per month across South Africa using external transport providers.
The Problem
Changing market dynamics, customer footprint and a reduction in average order size resulted in increased complexity and cost to effectively service the network. Decentralised planning often led to small, frequent deliveries to the same stores resulting in excessive multi-point collection and drop-off penalty costs. Optimisation of vehicle weight-volume utilisation became increasingly more difficult due to a wide product mix including tiles, baths, basins and toilets. Minimum visibility of yard activity and factory turnaround times were impacting transporter relationships. Furthermore, the price pressure on construction material and the low barriers to entry in importation of tiles, sanitaryware and baths resulted in Ceramic Industries being required to find innovative ways to optimise the planning and loading process in order to minimise costs and remain competitive.
The Approach
Savings opportunities were identified through transport modelling and analysis, focusing on:
Outsourced Planning Services
Yard Monitoring
Network Route Planning & Load Consolidation
Operational Dashboard
The Results
~8.6%
Saving on Logistics Costs to Date
3%
Reduction in Penalty Costs
96,8%
Vehicle Utilisation (up from 93.4%)
Platinum Award
Logistics Achievers 2019
13%
Reduction in Yard Turn around Time
30%
Growth in Transporter Pool, incl BEE SME’s