Tata Steel
Reaping the benefits of fourth party logistics for Tata Steel
Tata Steel had a good track record of managing logistics at a local level; however, without centralised management, journeys were being duplicated, racking up expensive empty miles. A traditional outsourced solution would have adversely affected existing customers and contractual arrangements. TDG therefore implemented an innovative transport management (4PL) fourth party transport solution.
Today the Tata Steel transport management platform is managed by a skilled TDG logistics team. An integrated suite of transport management software, with visual planner, enables users to easily update the ‘order to cash’ process using live information. Vehicles are now used for round trips, reducing costs as well as pressure on third party hauliers to find extra jobs to maximise their own efficiency.
Delivering quantifiable results
- TDG predicts annual savings of 500,000 litres of fuel by reducing miles travelled by a million - therefore levying environmental benefits too.
- Tata Steel have achieved initial savings to baseline of over 5%. These improve week by week.
- Seamless transition to new IT systems means service performance levels of 99% are being achieved.
“This 4PL Transport Platform is a major restructure of our internal logistics operations – and we have already seen cost and efficiency benefits. TDG’s technology also gives us the opportunity to improve our service offering to customers. The fact that all this is being achieved without losing a single supplier relationship is testament to TDG’s vision and real ability to find workable solutions to difficult problems.”
Paul Lormor, Long Products Division Director, Tata Steel.
Contact us to discuss how our 4PL experience in this case may be relevant to your business.
