Published on 20-Sep-2011
Validated on 23 Dec 2013
"Sterling TMS helps us improve our bottom line because it lets us tender to the lower cost carriers first. It also helps improve customer service because it streamlined our entire supply chain process." - Frank Provost, Corporate Logistics Manager, The Newark Group
The Newark Group
Cloud Computing, Commerce Solutions, SaaS, Smarter Commerce
Founded in 1912, The Newark Group is an integrated global producer of 100 percent recycled paperboard and paperboard products. With manufacturing and marketing operations in North America and Europe, the company meets world class standards in a complete range of grades, including tube board, chipboard, clay-coating and uncoated folding board, as well as many specialty paperboard grades.
Find a transportation management service with the functionality necessary to improve the bottom line
IBM® Sterling Transportation Management System
• Provides integrated, comprehensive supply chain execution • Improves bottom line by allowing the company to tender sequentially to lower-cost carriers first • Improves efficiency of logistics and operations, thus reducing shipping costs
The Newark Group wanted to replace its current transportation management system with one that enabled them to have carriers, rates, lanes and accessorials online and available to all TNG shippers, thus improving the bottom line. They wanted a network that would tender shipments automatically and by cost so they could make informed shipping decisions and improve efficiency. They also needed a network that could help them decentralize the shipping and receiving process, thereby streamlining the supply chain.
The Newark Company chose Sterling Transportation Management System (Sterling TMS) because it has virtually all the functionality necessary to tender to lower-cost carriers first, thus improving the bottom line. Sterling TMS provides a completely integrated, comprehensive supply chain solution, enabling the company to view, plan, execute, settle and analyze inbound and outbound transportation, as well as collaborate with supply chain partners.
For example, Sterling TMS tracks and manages the entire shipment lifeconline.on-line. “We know immediately what carriers are on what routes and what the charges will be,” he said. “Sterling TMS also shows us all planned and unplanned accessorials so
there are no disputes. It’s all in black and white.”
As planned, Sterling TMS has helped the company decentralize the freight process. Prior to IBM, one location handled most of the freight for the entire company. Now each of the 46 facilities nationwide is responsible for their own freight, thus increasing efficiency. Provost said Sterling TMS also allows everyone within the company to see each facility’s shipment information. “This means each facility knows what carriers are coming inbound to them, which means those carriers can also take outbound freight. Since our divisions supply materials to each other, Sterling TMS has helped us improve efficiency and decrease shipping costs.”
Sterling TMS gives The Newark Group the extensive visibility, accessibility and management of its supply chain process. Benefits include the following:
Visibility: Sterling TMS shows shipping routes and rates, allowing The Newark Group to tender the lower-cost carriers first, which
improves the bottom line.
Accessibility: Sterling TMS enables everyone within the company to see each others’ shipping information, which improves efficiency.
Management: Sterling TMS has helped the company decentralize and streamline the freight process, which saves time and money.
Sterling TMS also helps The Newark Group to achieve these results:
• Increase savings on continuous moves or round-trip shipments. Since both help ensure freight to carriers, The Newark Group can ask carriers for discounts.
• Eliminate off-contract tendering because all routes, rates and accessorials are online.
• Eliminate exceptions with invoicing because The Newark Group is paying carriers the contracted rate.
• Refocus staff resources because the shipping process is now automated.
• Improve customer service because Sterling TMS provides a direct interface with the company’s order management system, letting them transfer the data directly into Sterling TMS, which eliminates human error and saves time from doing double entry.
Products and services used
IBM products and services that were used in this case study.
© Copyright IBM Corporation 2011 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America July 2011 All Rights Reserved IBM, the IBM logo, ibm.com and Sterling Commerce are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at www.ibm.com/ legal/copytrade.shtml. The information contained in this publication is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this publication, it is provided AS IS without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this publication or any other materials. Nothing contained in this publication is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in this publication to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in this presentation may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. Nothing contained in these materials is intended to, nor shall have the effect of, stating or implying that any activities undertaken by you will result in any specific sales, revenue growth, savings or other results. Please Recycle ZZC03111-USEN-00