The Exchange has reached a major milestone—using its new, high-tech Enhanced Transportation Management System with 500 suppliers and shipping companies.
The modern system fits with two of the Exchange’s strategic priorities for 2018—reduce operating costs and optimize the supply chain. A team at the Dallas headquarters is working with Team Oracle, the system’s vendor, to implement the technology.
The system manages freight owned by the Exchange from vendor to the distribution centers to the stores in the most economical way.
“We need to replace the current transportation management system, which we implemented in 2004, because it has reached the end of its life and falls short of what we really need,” said Executive Vice President and Chief Logistics Officer Karen Stack. “Significant technological advances have been made in the area of transportation management, and our current system can no longer be upgraded to achieve the necessary efficiencies.
“The Exchange is investing in technology like the transportation management system to be more efficient and competitive.”
Numbers adding up
The Exchange launched the transportation management system last October and has added suppliers and transportation partners since then, reaching the 500 milestone with eyes on more than 3,000 vendors within the coming months.
Since January, the Exchange has processed more than 800 shipments, averaging 133 a month. With the system’s help, the number of yearly shipments could reach into the thousands and allow faster, more timely delivery to store shelves.
The next phase is being planned to focus on outbound shipments from Exchange distribution centers.
“We are excited about how the new system will help the Exchange reduce costs through better planning of truck routes, deciding the right type of service and engaging in such activities by grouping smaller shipments to fill a truck,” said Robert Stutson, director of transportation operations. “We have gained better flexibility in making changes in delivery plans and tracking transportation costs per shipment and per order.”
Keep up with how the Enhanced Transportation Management System project in future Exchange Post articles. In addition, read about other ways the Exchange is reducing costs and optimizing the supply chain:
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