The logistics industry relies strongly on digital capabilities to orchestrate complex transportation operations profitably today. The bigger the business, the greater the scope of impact that can be attainable with the right digital solutions.
Our client, a $1bn+ logistics conglomerate operating in four contract logistics verticals, wanted to realize these tactical benefits of technology transformation. They sought to take advantage of the newest digital capabilities to improve resource planning, provide a consistent user experience, and boost profitability across all business lines.
The client entrusted Birlasoft with this large-scale transformation initiative and realized 70% better profitability control, 50% lower cost deviations, and 10% higher 3PL revenue through this undertaking. Read the details of this engagement below.
The Challenge
Operating across vessel and container operations, freight forwarding, and contract logistics, our client was leveraging multiple technology systems that were working in silos.
#1. Lack of end-to-end shipment visibility
The inability to track and trace shipments in real-time negatively impacted operational efficiency and the customer experience. Orchestrating shipments across multiple channels further complicated the operations due to this lack of visibility.
#2. Suboptimal cost and profitability control
Manual orchestration of logistics workflows and the lack of a single, reliable source of truth about crucial data, such as cargo utilization, led to varying profitability across transactions. Fulfillment costs varied, and transit times differed.
#3. Poor decision-making and collaboration
Large-scale logistics players collaborate with various vendors, customers, and partners during their day-to-day operations. Siloed systems lead to a poor collaboration experience and suboptimal decisions based on incomplete or inaccurate data.
The Solution
To mitigate these challenges, Birlasoft reimagined the Integrated Logistics business model and devised an integrated Oracle ERP Cloud architecture that transformed the core operations.
#1. Built a single source of truth with an integrated Oracle ERP cloud architecture
Birlasoft built end-to-end digital workflows by integrating Oracle CPQ and Maintenance Cloud, WMS Cloud, Transportation Management, and Procurement module. This enabled us to achieve seamless order and quote visibility, optimal shipment planning and execution outcomes, and streamlined financial operations. Every line of business now had visibility into critical operational data, which enabled better resource utilization.
#2. Transformed the business model to enable the Integrated Logistics
Birlasoft digitized all services and products, standardized processes, and enabled the client to compete as an ecosystem in its industry. By deploying predictive analytics, automated scheduling and shipment execution, and a platform for omnichannel delivery orchestration, we helped the client to scale positive outcomes across its operations systemically – i.e., cost reductions, reduced and predictable transit times, and consistent margins.
#3. Redesigned collaboration experiences and decision-making processes
The new integrated architecture enabled better internal and external collaboration with stakeholders such as carriers, agencies, partners, and vendors. In addition, we developed real-time dashboards with custom insights for business users, which resulted in better decision-making.
The Impact
Following this engagement, our client achieved significant efficiency improvements, cost reductions, and revenue enhancements, alongside tangible benefits in collaboration and customer experience.
1. Streamlined quotation execution and profitability control
The client realized an 80% improvement in the efficiency of the quotation execution cycle by leveraging a margin threshold-based approval process. Additionally, the introduction of three-dimensional margin visibility (Planned vs. Provisional vs. Actual) at the job level improved efficiency and control over profit margins by 70%.
2. Reduced cost deviations and speeded up response times
By addressing inefficiencies in standalone bookings and improving planning accuracy, the client reduced cost deviations (Planned vs. Actual) by 50%. At the same time, response times to customer inquiries were cut in half, enhancing service levels.
3. Enhanced space utilization and revenue growth
Optimized space utilization led to a 15% increase in effective warehouse use, enabling the onboarding of approximately 30% more customers within the same facility. Furthermore, the client achieved a 10% increase in warehouse 3PL billing revenue, solidifying profitability gains.
Lastly, the integrated digital architecture enabled end-to-end shipment, financial, and order visibility and resulted in a transformative improvement in the customer experience.
