Overview

In today’s intensely competitive business landscape, pursuing cost-saving operations is a top priority for savvy business owners and operations managers across diverse industries. The ever-present goal is to enhance efficiency and reduce overhead without compromising quality. Fortunately, the evolution of transportation management software (TMS) systems has paved the way for achieving these objectives. By focusing on cost-saving operations, TMS empowers businesses to boost profit margins while simultaneously elevating efficiency and the quality of service provided.

SafeTruck’s Transportation Management System (TMS) offers a comprehensive customized solution that optimizes supply chain operations. By enhancing efficiency and reducing operational costs, SafeTruck’s TMS empowers businesses to navigate complex transportation challenges while ensuring cost-effective, safe, and streamlined operations.

Introduction

City Zone Express, which initially began as a small office in Prai, Penang, Malaysia, offering industrial customs clearance services primarily to other freight forwarders, nurtured aspirations of becoming a prominent logistics service provider in Malaysia.

In 2008, they strategically merged with Chasen Holdings Limited, a publicly traded company in Singapore. This strategic merger proved to be a notable success, launching City Zone Express into a period of rapid growth and empowering them to establish an extensive network. Currently operating under the leadership of Mr Raj as a subsidiary of the Chasen Group, City Zone Express now boasts an impressive fleet of over 260 vehicles. Additionally, the company has acquired warehouses and container depots in various countries, including Malaysia, Singapore, Thailand, Vietnam, Laos, Myanmar, and China.

Challenges

The business expansion presented Mr. Shah had numerous challenges in managing his fleet.

“The challenge our company often faces is the complexity of managing our operations efficiently.”

Since implementing SafeTruck’s TMS, we’ve witnessed a notable reduction in transportation costs, which is a testament to its effectiveness. The ease of planning cargo shipments and monitoring our trucks’ movements has streamlined our processes, leading to cost savings. In terms of value for cost, SafeTruck’s TMS offers excellent value, as we’ve realized significant cost savings in the range of 30%. The transparency and clarity of cost breakdowns and invoices generated by the system are commendable, rating a solid 4 out of 5.

In our experience, it took approximately 6 to 12 months to see a positive return on investment (ROI) after implementing SafeTruck’s TMS. The transparency and ease of understanding in the cost breakdowns and invoices generated by SafeTruck’s TMS are impressive. Our organization, falling in the medium-size category with an annual revenue or transportation budget ranging from RM10 million to RM50 million, has greatly benefited from SafeTruck’s TMS in our journey to reduce costs and enhance overall cost-efficiency.

– City Zone Express Sdn Bhd

Solution

Safetruck’s approach to improving cost saving through the Transportation Management System can be summarized into several core strategies:

1. Improved Efficiency and Labor Cost Savings

SafeTruck’s TMS reduces the need for manual labour in client transportation management systems, resulting in cost savings and increased overall accuracy. Employees, no matter how well-trained, are prone to errors due to factors such as fatigue, distractions, and inexperience. An automated system for managing transportation can significantly minimize client reliance on a large workforce. This streamlined approach not only enhances accuracy but also speeds up the process of order fulfillment, resulting in substantial cost savings for the client’s company business.

2. Vehicle Utilization and Scheduling:

SafeTruck’s Transportation Management System (TMS) has a robust job-trip planner, offering clients a powerful tool to maximize vehicle utilization. This feature facilitates efficient trip planning, preventing duplicate trips and resulting in significant cost savings. By optimizing the allocation of trips to available vehicles, this tool enhances overall operational efficiency, proving invaluable across industries where the effective use of assets is crucial for profitability. SafeTruck’s TMS not only streamlines operations but also empowers businesses to make informed decisions, contributing to their sustained success and financial well-being.

3. Cost-efficient Driver Management and Compliance:

SafeTruck’s TMS places a strong emphasis on cost-efficient driver management and compliance. This feature ensures drivers adhere to safety regulations and legal requirements while minimizing operational costs. By actively overseeing driver compliance, the system helps in avoiding unnecessary summons. This not only enhances the overall safety and legality of transportation operations but also reduces the financial burdens associated with legal penalties.

4. Customization and Integration for Business Growth:

SafeTruck’s TMS offers the advantage of customization and integration for streamlined operations. The system’s adaptability empowers clients to tailor the TMS to their needs and operational requirements. This customization and integration capability drives business growth and profitability while maintaining cost-efficient operations. By offering tailored solutions, clients can better meet the evolving demands of their customers and industry, leading to long-term cost savings and enhancing competitiveness. This serves as a valuable asset in the pursuit of overall financial success and cost-effective operations.

Qualitative and Quantitative Results

City Zone Express Sdn Bhd experienced significant positive outcomes following the implementation of SafeTruck’s Transportation Management System;

1. Enhanced Efficiency:

Implementing SafeTruck’s TMS has significantly improved the efficiency of our transportation operations. It allows for easier planning of cargo shipments and real-time monitoring of truck movements, enabling the client’s company to make informed decisions swiftly.

2. Cost Savings:

City Zone Express has achieved a significant 30% reduction in transportation costs since implementing SafeTruck’s TMS. This represents a substantial cost-saving achievement that positively impacts the bottom line.

3. ROI within 6-12 Months

City Zone Express realized a positive return on investment (ROI) within 6 to 12 months of implementing SafeTruck’s TMS. While specific financial figures are not provided, this timeframe quantifies the system’s efficiency and cost-effectiveness, showcasing the rapid financial benefits.

4. Annual Revenue:

City Zone Express falls into the medium-size category, with an annual revenue or transportation budget ranging from RM10 million to RM50 million. SafeTruck’s TMS has contributed to optimizing the client’s company transportation operations within this budget.

Conclusion

City Zone Express’s successful integration of SafeTruck’s Transportation Management System (TMS) underscores the significant impact of TMS on cost savings and operational efficiency. This efficiency extended to the utilization of vehicles and streamlined operations, contributing to increased cost savings. Furthermore, the system’s ability to integrate and customize solutions positions clients for long-term growth and profitability. SafeTruck’s TMS is a powerful tool for businesses seeking to enhance their competitiveness, reduce expenses, and secure a profitable future in the dynamic world of transportation management.