The Newark Group improves the bottom line with a completely integrated, comprehensive supply chain solution

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

Customer:
The Newark Group

Industry:
Consumer Products

Deployment country:
United States

Solution:
Cloud Computing, Commerce Solutions, SaaS, Smarter Commerce

Overview

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.

Business need:
Find a transportation management service with the functionality necessary to improve the bottom line

Solution:
IBM® Sterling Transportation Management System

Benefits:
• 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

Case Study

Business challenge

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.

Solution

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.”

Key benefits

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.

Software:
Sterling Transportation Management System

Legal Information

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