SPDL Reduces Its Annual Logistics Costs by $1.2 Million With JDA Transportation Modeler
Region
- America
Country
- Brazil
Product
- JDA Transportation Modeler
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Environmental Impact Reduction
Technology Category
- Functional Applications - Fleet Management Systems (FMS)
Applicable Functions
- Logistics & Transportation
Use Cases
- Fleet Management
About The Customer
São Paulo Distribuição e Logistica (SPDL) is a strategic venture between two of Brazil's largest newspaper groups, O Estado de São Paulo and Folha de São Paulo. The company was founded in 2002 and has since created a daily distribution operation that serves more than 900 cities, as well as 700,000 last-mile distribution locations, with 1,250 vehicles traveling more than 100,000 kilometers each day. SPDL's main goal is to minimize transportation costs while maintaining the newspaper delivery service levels that readers expect.
The Challenge
São Paulo Distribuição e Logistica (SPDL), a strategic venture between two of Brazil's largest newspaper groups, O Estado de São Paulo and Folha de São Paulo, was facing the challenge of continuously optimizing their distribution costs in the face of skyrocketing fuel costs and the proliferation of online news sources. SPDL's transportation network serves more than 900 cities, as well as 700,000 last-mile distribution locations, with 1,250 vehicles traveling more than 100,000 kilometers each day. Despite having a mature operation, SPDL was seeking greater levels of efficiency. They were relying on spreadsheets and manual analysis techniques, and there were no additional savings opportunities that they could identify. They had systematically and thoroughly reviewed every truck route, using the tools they had available.
The Solution
SPDL decided to implement JDA Transportation Modeler from JDA Software’s Intelligent Fulfillment™ suite to take its logistics analysis to the next level. The company defined an ambitious goal for its JDA implementation: a 5 percent reduction in the costs associated with running trucks from printing sites to country-wide distributors. After using JDA Transportation Modeler for nearly a year, SPDL has already achieved its 5 percent cost-reduction target, and then exceeded it. JDA Transportation Modeler uncovered new opportunities that resulted in a potential total transportation savings of 12.7 percent — representing an annual cost improvement of $1.2 million. A key factor to achieving this high return was the improved speed and depth of SPDL’s analysis, thanks to JDA Transportation Modeler.
Operational Impact
Quantitative Benefit
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