Global Corporate Shippers
Cargo Company Implements LeanTMS® to Globalize Transportation Management
Canada’s largest full-service airline serves more 32 million customers annually and provides direct passenger service to over 170 destinations on five continents. The cargo services division provides direct cargo services to over 150 Canadian and international destinations including Europe, Asia, South America and Australia. In addition, the company trucks to an additional 155 global destinations, making the trucking network as large as the flight network.
Business Process and Problem Definition
The trucking part of the business is often considered an extension of the cargo network. However, trucking is becoming more vital to the company as the economy truly becomes more global and the trucking network expands along with growing boundaries.
Along with business challenges that growth presents, the company faced many ground transportation challenges, including a lack of stability within the transportation network. Also, a lack of standardization throughout the organization caused problems – a procedure in North America might be followed differently in the UK and a totally different way in the rest of Europe. In addition to standardization and stability problems, headquarters had poor visibility of logistics information into all the different regions. Settlement disputes with trucking companies were common, which often put long holds on payments and required a lot of manual intervention to resolve the issues.
Air Canada Cargo established a list of goals for a global ground transportation system:
- Increase visibility to better manage global transportation
- Establish standardization amongst all the international trucking networks
- Improve stability across the trucking network
- Gain prepayment audit and
Process Improvement – SaaS Solution
LeanLogistics LeanTMS® was selected to gain visibility, standardization and stability across its global ground transportation network. LeanLogistics LeanTMS, utilizing true SaaS technology, allows scalability across multiple divisions, across country lines and continents around the world. It enables a single global ground management center to have real-time visibility, accurate cost information for reporting and the ability to expand beyond traditional TMS functions into the transportation procurement side of the business as well.
LeanLogistics LeanTMS also delivered key global features, including multiple languages, units of measure, and multiple currencies. LeanLogistics WebSettle® technology completes prepayment audit and freight payment capabilities. Trucking partners are much happier since payments are much faster with the LeanLogistics solution, due to audit quality rates housed in the system.
Additional benefits of LeanLogistics LeanTMS include:
- Increased savings of transportation spend
- Reduced carrier overcharges through visibility and more accurate records
- More fully loaded equipment
- Improved productivity and timesavings due to more automated processes
- Lower cost mode selection
- Increased collaboration between Air Canada Cargo and trucking partners
- Better carrier procurement negotiations
Collaboration, visibility and standardization are a few of the key benefits gained from LeanTMS. Prior to LeanLogistics, there were many disputes with carriers concerning charges and now there is very clear visibility globally into the trucking information. Trucks also depart stations more accurately loaded because of the greater visibility within the transportation network. The company saves time due to the more automated process, especially in the accounting and billing processes. Carrier procurement negotiations are greatly streamlined, down to one-fourth the time taken previously.
The benefits received from LeanLogistics include:
Improved Visibility: The global management center has visibility into the entire global transportation network, including individual trucks, freight, and cost information
Increased Collaboration: The company has better collaboration internally within the international divisions, as well as among trading partners and customers
Managed Globalization in Single System: With an expanding geographic footprint and a trucking program that grows 20% yearly, utilizing a single system with domestic and global features is vital
Increased Financial Benefits: Productivity and efficiency are greatly improved, which saves money in truck utilization, elimination of manual processes, carrier overcharges and freight spend